BlockBeats News, August 21st. Bitcoin broke through the $75,000 mark, reaching a new three-month high. This rally was mainly driven by the US Treasury's announcement to expand long-term Treasury liquidity support repurchase operation size. The US Treasury had previously stated that it would at least double the size of the liquidity support repurchase operations for 10 to 30-year long-term nominal coupon securities. Additionally, factors such as the SEC's latest crypto regulation proposal and a White House meeting between Trump and crypto industry executives further boosted market sentiment.

The strong surge also triggered a massive short squeeze. Coinglass data shows that Wednesday's Bitcoin surge has already liquidated over $2.75 billion in BTC short positions. In the past 24 hours, an additional $783.2 million in Bitcoin positions were liquidated, with $747.7 million of that being Bitcoin short positions.

However, analyst Shawn Young believes that the current uptrend may be overinterpreted by the market. He stated that the crypto market's "reaction to the US Treasury intervention measures far exceeds their actual impact," and the bond market changes are more about forcing shorts to cover rapidly rather than improving Bitcoin's macro fundamentals. US Treasuries are still competing with Bitcoin for marginal funds, and the current rally is more driven by the unwinding of overly crowded short positions in the market. He said that Bitcoin breaking $70,000 "seems premature."

Zeus Research analyst Dominick John stated that short squeezes may continue to drive prices up in the short term, but as the forced buying pressure diminishes, the subsequent market will need to rely on real spot demand, liquidity conditions, and macro fundamentals for support.

He mentioned that the key to the next phase of the market is whether new funds can enter the market, transforming the current short squeeze rally into a sustained uptrend. Additionally, if the Clarity Act progresses smoothly in September, it could serve as a significant catalyst for further growth in the crypto market.