Bitcoin crossed $80,000 for the first time since May 15, 2026, as a Treasury bond buyback announcement and a historic short squeeze propelled the cryptocurrency on its strongest rally in years. The price of bitcoin price USD reached $80,527.93 early on August 25, extending a recovery that has gathered momentum across the crypto market, according to CoinDesk.
The rally began on August 19 when the U.S. Treasury Department announced it would double the maximum size of long-dated bond buyback operations from $2 billion to at least $4 billion. This move was designed to improve liquidity in the bond market after yields had surged to levels not seen since 2007, and it proved to be the primary catalyst for crypto’s rebound.
Stephen Coltman, head of macro at a major investment firm, described the Treasury’s buyback announcement on August 19 as the “main catalyst” for bitcoin’s surge, according to MarketWatch. The announcement signaled that the U.S. government would absorb longer-duration bond risk to prevent yields from spiraling further, a shift that boosted risk assets including cryptocurrencies.
The move triggered a powerful short squeeze in the crypto market. More than $3 billion in short positions were liquidated as bitcoin broke higher, forcing traders who had bet on lower prices to buy back their positions at losses. This forced buying amplified the rally, with bitcoin jumping from around $62,800 on Tuesday, August 19, to touch $80,000 late on Friday, August 23.
The broader context for the rally included renewed regulatory support for the cryptocurrency industry. Earlier in the week, Trump had met with crypto leaders and backed the CLARITY Act, pending crypto legislation in Congress. This convergence of macro support, Treasury intervention, and technical forced buying created what analysts described as the biggest three-day crypto rally since 2023.
Bitcoin’s recovery marks a dramatic turnaround from its weakness earlier in August. The cryptocurrency had fallen as low as $62,630 before the Treasury announcement, a decline that had pushed it well below the $80,000 level it had briefly touched in early May 2026. On May 4, 2026, bitcoin had crossed $80,000 for the first time in months, reaching an intraday high of $80,750, but had since retreated as bond yields climbed and macro uncertainty increased.
The current move above $80,000 represents a 25% surge over the past week, according to Forbes, and has reignited debate about whether bitcoin could climb further. Traders on prediction markets have raised their odds of bitcoin reaching $80,000 by year-end to above 60%, though some analysts caution that the short squeeze may have already peaked and that a consolidation could follow.
Sources
- CoinDesk — confirmed bitcoin crossed $80,000 for the first time since May 15, 2026, with price at $80,527.93
- Forbes — reported bitcoin rose to $80,453 early on August 25, up more than 25% in the past week
- MarketWatch — quoted Stephen Coltman, head of macro, calling the Treasury’s August 19 buyback announcement the “main catalyst” for the rally
- Benzinga Pro — reported bitcoin trading at $80,675, up 4.21% in the last 24 hours
- Yahoo Finance — reported more than $3.1 billion of crypto short positions were liquidated as bitcoin broke higher
- Anadolu Agency — confirmed bitcoin rose above $80,000 for the first time since May, trading at $80,545 as of 0640 GMT
- Fortune — reported bitcoin price on May 15, 2026, was $80,120.03
- CoinSpot — confirmed bitcoin was last traded above $80,000 on May 15, 2026
- Business Insider — cited Trump, Treasury intervention, a weaker dollar, and a short squeeze as combined drivers of the rally
- CNBC — reported the Treasury’s bond buyback announcement as a key catalyst and noted the biggest 3-day crypto rally since 2023
