Hassan Maishera
TL;DR
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Bitcoin reached $69,000 for the first time in two months, while Ethereum reclaimed $2,000.
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The rally followed the US Treasury’s decision to at least double the size of buyback operations for longer-dated securities.
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The SEC also proposed exemptions that could simplify certain crypto asset offerings.
Bitcoin surged to $69,000 on Wednesday, reaching its highest level in two months as an expansion of US Treasury buyback operations improved investor appetite for riskier assets.
Ethereum joined the rally, climbing 10% to reclaim $2,000 for the first time since May. Solana, XRP and several other major altcoins gained more than 5% over the previous 24 hours.
The advance followed supportive developments from the Treasury Department and Securities and Exchange Commission, alongside a White House meeting involving President Donald Trump and several cryptocurrency executives.
Treasury Doubles Long-Term Securities Buybacks
The US Treasury Department announced that it will at least double the maximum size of liquidity-support buybacks for longer-dated nominal coupon securities.
The changes apply to securities within the 10- to 20-year and 20- to 30-year segments. The maximum size of each operation will increase from $2 billion to at least $4 billion.
The adjustment will take effect on September 9 and remain in place through November 4, covering the rest of the current refunding quarter.
The Treasury said the increase reflects its intention to provide additional liquidity support in longer-dated markets, where buyback operations have consistently attracted significant volumes of high-quality offers.
Although the program is not equivalent to traditional quantitative easing, investors interpreted the announcement as a positive liquidity development for financial markets.
Crypto sentiment also received support from a new proposal introduced by the SEC on Tuesday.
The agency’s proposed Regulation Crypto Assets would establish two tailored exemptions for certain offerings involving crypto assets tied to investment contracts.
Under the proposal, qualifying issuers could raise up to $5 million over four years or as much as $75 million annually, provided they meet applicable disclosure requirements.
The proposal could create a clearer pathway for some digital asset issuers while broader cryptocurrency legislation remains stalled in Congress.
Meanwhile, several cryptocurrency executives were scheduled to meet Trump at the White House on Wednesday afternoon, further strengthening optimism surrounding the US regulatory environment.
Bitcoin and Ethereum Lead Broad Market Rally
Bitcoin climbed approximately 8% and briefly touched $69,000, marking its first return to that level in two months.
Ethereum recorded an even larger advance, jumping roughly 17% to hit $2,200 for the first time since May.
Solana, XRP and other leading altcoins also participated in the rally, gaining more than 5% over 24 hours.
The broad advance suggests improving risk appetite across the cryptocurrency market rather than demand being concentrated solely in Bitcoin.
The rapid price increase triggered a major wave of liquidations as leveraged traders were caught on the wrong side of the market.
Total liquidations reached approximately $1.92 billion over 24 hours, according to CoinGlass. Around $1.7 billion of that amount was recorded within just four hours.
The final total could be considerably higher because publicly reported liquidation figures do not always capture every exchange or position in real time.
The scale and speed of the liquidations suggest that a sharp short squeeze helped accelerate the rally as exchanges forcibly closed bearish positions.
