Bitcoin breaks through US$68,000, the Ministry of Finance appeases the bond market, and the altcoins

Bitcoin's price exceeded US$68,000, with an intraday increase of 5.15% and a weekly increase of 7.46%. Ethereum performed even stronger, rising 7.80% to close at $2,064.79. The U.S. Treasury Department will at least double the size of its long-term bond repurchase starting September 9.

Short positions became the main source of short positions that day. Bitcoin climbed above $68,000 on Wednesday after the U.S. Treasury Department announced it would at least double the size of its long-term treasury debt liquidity to support repo operations, and all major altcoins rose. The move brought the 30-year bond yield back to a 19-year high set the previous day. Bitcoin traded at US$68,122.88, up 5.15% in 24 hours, Ethereum rose 7.80%, and Solana rose 6.37%. Stocks ended three consecutive days of losses, with the Dow rising about 306 points. The move was entirely triggered by the bond market, and the rally was continuing as of this writing.

Shorts pay the price for the rise

On the same day, leveraged positions betting on further market declines were liquidated in large quantities, and the liquidation of short positions was about four times the liquidation of long positions. For weeks, market positions have been tilted in the wrong direction as Bitcoin fluctuated within a narrow range and volatility fell to multi-year lows. When bond markets turn, these traders become forced buyers, which is why the gains in the second half of the trading session are faster than in the first half.

The increase was not evenly distributed. Bitcoin's market value reached US$1.36 trillion, a weekly increase of 7.46%. Ethereum opened at $1,917.85, but has now risen to $2,064.79, up 9.16% in seven days, and its current market value is $249.18 billion. Solana reached $81.88, XRP was $1.05, and Dogecoin rose 4.44%. BNB and TRON were lagging significantly behind, with TRON still falling 0.66% in seven days despite general market gains.

Bitcoin US$68,122 + 5.15% 24 hours· +7.46% 7 days

Ethereum 2, US$064 + 7.80% 24 hours· +9.16% 7 days

Solana US$81.88 + 6.37% 24 hours· +8.24% 7 days

XRP 1.05 US$1.64% 24 hours· +4.85% 7 days

Privacy coins led mainstream currencies in weekly performance

Zcash rose 6.98% on the day, with a weekly increase of 13.06%, closing at US$548.08, making it the strongest weekly performer among mid-cap currencies. Midnight, the privacy token related to Cardano, reached $316.84 million, up 11.76%, but due to its small market value, this percentage increase more reflects a weak order book than firm market confidence. Worldcoin gained 5.01%, while Sui rebounded 6.59% after falling for most of the week. Ethereum's presence at the top of the one-hour gainer list is an exception, as an asset with a market cap of $249 billion typically does not fluctuate within the same range as a token with a market cap of less than $400 million.

ZEC +13.06% 7 days·US$548.08

NIGHT +10.81% 7 days·US$0.01907

XLM +4.60% 7 days·US$0.1671

HYPE +7.56% 7 days·US$60.12

SUI +1.91% 7 days· 0.6984 US $

US$2 billion in operational adjustments have leveraged the US$2.3 trillion market

Under the leadership of Treasury Secretary Scott Bessent, the U.S. Treasury Department will increase the maximum size of its repurchase operations from US$2 billion to at least US$4 billion, targeting 10-to 20-year and 20-to 30-year treasury bonds. These areas have been facing a buyer shortage since late June. This adjustment will begin on September 9 and end on November 4 (the next quarterly refinancing announcement date).

This is a market liquidity operation, not an economic stimulus. Governments buy back old bonds that are trading less actively than newly issued bonds, traders hand over bonds they no longer want to hold, and the funds are obtained by issuing short-term bonds. The move is effective because it provides traders with a reliable exit channel for old illiquid inactive bonds, thereby reducing the premium they initially required to hold the bonds.

"This is not debt repayment, this is just a rearrangement of the maturity structure of national debt."-- Peter Bukwa, Chief Investment Officer, One Point BFG Wealth Partners

The pressure that made this operation necessary has been building for weeks. The fiscal deficit in July reached $432.3 billion, the largest monthly figure since March 2021, bringing the year-to-date deficit to nearly $1.8 trillion. Servicing about $40 trillion in national debt has cost about $1.2 trillion this year. Corporate bond issues related to artificial intelligence construction are competing for the same funding, with last week's auction of 30-year bonds settled at the highest yield since 2001, and the conflict in the Middle East keeping oil prices and inflation expectations high. The long-term treasury bond market has simply exhausted natural buyers.

Bond Market Trends

30-year Treasury Bond Yield: Touched as high as 5.337% on Tuesday, the highest since June 2007 → 5.196%(-9 basis points)

10-year Treasury Bond Yield: 4.747% → 4.647%(-6 basis points)

Why 9 basis points are important for the non-yielding asset class

When the yield on long-term bonds backed by the government exceeds 5.3%, the reason for recommending to the Investment Committee to hold an asset that does not generate any yield and has a one-day volatility of 5% becomes unconvincing. Falling yields reversed this calculation and reduced the cost of funding for leveraged funds that provide significant amounts of money for cryptocurrency trading. Market sentiment has not yet caught up. The Fear and Greed Index read 44, still in the neutral range, after bears were hit hard. On a day when Bitcoin is up by 5% a day, neutral readings usually mark a respite from a rebound rather than a trend shift.

September 9 is the time for policy implementation verification

No actual purchases have yet been made, and the scale of the rally in the cryptocurrency market has begun to exceed what can be reasonably explained by a 9 basis point change in long-term bond yields. The real test is whether the 30-year yield can remain near 5.196% when the operation really starts, not just the plan. Until then, the minutes of the Federal Reserve's July meeting will have an impact on short-term interest rates, especially given that three officials voted in favor of raising rates at the time. The issuance of more short-term notes to fund repos has also shifted government borrowing to maturities that are most sensitive to policy changes, increasing rollover risks in 2027. The mortgage market provides a clearer signal to whether the adjustment is effective: The average interest rate on a 30-year fixed-rate mortgage hit 6.75% on Tuesday, and if the adjustment is effective, it will follow the same curve downward.

Price data as of August 19, 2026 at 18:32 UTC. The market continues to rise as of this writing.