Bitcoin Tops $75,000 Intraday as Short Squeeze Fuels Rally, Analysts Warn It May Be Overdone

Bitcoin climbed above $75,000 for the first time in more than three months, though some analysts said the rally may have run too far.

Crypto outlet The Block reported on Aug. 21 that Bitcoin traded as high as $75,560 intraday, up more than 8.9% over the past 24 hours. The rally was fueled in part by the US Treasury Department’s announcement that it would at least double liquidity-support purchases of long-dated Treasuries with maturities of 10 to 30 years. A new crypto-related proposal from the US Securities and Exchange Commission and a White House meeting between President Donald Trump and executives from major crypto companies also added momentum.

The jump triggered a wave of short liquidations. CoinGlass data showed $2.75 billion of Bitcoin short positions were forcibly liquidated on Wednesday alone. Another $783.2 million of Bitcoin positions were liquidated over the following 24 hours, including $747.7 million of shorts.

Some analysts, however, questioned how long the rally can last. Shawn Young, chief analyst at MEXC Research, said the crypto market is assigning far more significance to the Treasury’s intervention than it deserves. The Treasury has merely opened a pressure valve, while the market is reacting as if the paradigm has changed. Treasury-yield moves accelerated the unwinding of short positions, but did not improve Bitcoin’s underlying macro backdrop. In his view, a move above $70,000 is premature.

Dominic John, an analyst at Zeus Research, said short liquidations could lift prices in the near term. Once crowded bearish positions are cleared out, however, the rally will need real spot demand, liquidity and macro fundamentals to sustain itself. The real test, he added, is whether fresh money enters the market and turns a short-covering rally into a lasting advance. If the prospect of the Clarity Act passing in September becomes more realistic, that could help turn the current rally into sustainable market growth.

Meanwhile, Bitcoin’s Fear and Greed Index stood at 62, putting it in the “Greed” zone for the first time since October 2025, when Bitcoin hit a record high.