Bitcoin Pushes Above $72K as Higher Bond Yields Raise Market Concerns

Markets are set to test Treasury Secretary Scott Bessent’s efforts to push long-term US government bond yields lower.

The Philadelphia Fed’s Manufacturing Business Outlook Survey jumped to 47.4 in August, marking its strongest reading in more than 10 years.
The index stood at 41.4 in July, while economists had expected it to retreat to 25.
The prices-paid measure dropped 13 points to 40.9.
US jobless claims remained historically low, with initial claims falling to 206,000 last week from 212,000 previously. The reading differs from recent nonfarm payrolls data, which has pointed to some cooling in the labor market.
Treasury yields continued their advance, with the 10-year yield rising four basis points to 4.69%.

Bitcoin slipped toward $71,500 on Thursday after reaching an intraday high of $72,344. The cryptocurrency was still up about 11% for the day, according to CoinDesk data.
The modest decline followed Bitcoin’s breakout above $72,000 during European trading, pushing its market capitalization above $1.4 trillion.
Crypto prices continued to move independently of stocks, while US equity futures struggled ahead of the open. Higher bond yields weighed on the Dow, S&P 500 and Nasdaq, while Walmart shares declined following its earnings report.

The Treasury Department surprised markets Wednesday by announcing plans to substantially increase buybacks of longer-maturity government bonds under Bessent.
The announcement sparked speculation that the move could have a liquidity-boosting effect, sending the 30-year Treasury yield down 10 basis points and helping drive Bitcoin above $72,000 for the first time since early June.
However, lowering long-term borrowing costs on a sustained basis could require more than a single round of Treasury purchases.
Yields quickly recovered some of Wednesday’s decline. Roughly 90 minutes before the US stock market opened, the 30-year yield had climbed five basis points to 5.24%.
The 10-year yield moved back above 4.70%, while the two-year yield rose to 4.195% after touching 4.12% the previous day.

Bitcoin is on pace to finish August higher for the first time since 2021, gaining roughly 15% so far this month.
The cryptocurrency has posted losses in each of the previous four Augusts. It is also heading toward its first quarterly advance since Q3 2025, with gains of about 23% so far this quarter.
However, August still has more than a week remaining, and September has historically been a difficult month for Bitcoin, with average losses of around 3%.
BTC remained just below $72,000.

The US Dollar Index has dropped 3% since the end of July and was recently around 98.6.
DXY fell below its 200-day moving average Wednesday after Bessent unveiled the Treasury’s bond-buyback plans.
If the dollar remains below that key technical level, currently near 99.1, the weaker greenback could provide additional support for risk assets such as Bitcoin.

Bitcoin’s move above $69,000 triggered roughly $243 million in short liquidations within an hour, according to CoinGlass.
Shorts accounted for almost the entire $252 million liquidation total, while long positions lost about $9 million.
Bitcoin was responsible for around $220 million of the liquidations, with Ether contributing approximately $11 million.
Liquidations occur when leveraged positions move too far against traders and exchanges automatically close them. Short liquidations can accelerate rallies because traders must buy back the assets to exit their positions.
Total crypto liquidations reached $3.26 billion over 24 hours, with short positions accounting for $1.2 billion of the $1.31 billion liquidated during the previous 12 hours.

Bitcoin reached $71,000, gaining more than 2.5% in 24 hours and about 12% over the past week.

India’s Reserve Bank took markets by surprise by indicating that it could raise interest rates later this year, sending Indian bond yields higher.
Minutes from the RBI’s August meeting showed policymakers becoming increasingly concerned about inflation. Deputy Governor Poonam Gupta raised the possibility of a rate increase, while external members suggested that monetary policy may need to be adjusted.
The shift could have implications for crypto markets given India’s large base of digital asset users. Tighter monetary conditions could affect domestic trading activity and strengthen the rupee backdrop.
The RBI’s hawkish tone also contrasts with expectations for easier US monetary policy and strong crypto ETF inflows, both of which have helped Bitcoin move above $69,000.

China’s tech-heavy Star 50 Index has emerged as a closely watched benchmark as Beijing accelerates investment in AI and semiconductor self-sufficiency.
Technology companies now represent around 86% of the index, which has outperformed the CSI 300 by roughly 30% this year.
The index provides another indication of the global AI investment cycle that has driven semiconductor stocks and shown a loose connection with crypto market performance.

US spot Bitcoin ETFs attracted $517 million on Aug. 19, their biggest daily inflow since early May. Ether ETFs added $189 million, their strongest inflow since October 2025, according to SoSoValue.
The combined $706 million in inflows highlights renewed demand behind Bitcoin’s move above $69,000 and Ethereum’s 18% jump toward $2,250.
The latest ETF activity comes after months of subdued Bitcoin trading below $64,000, during which institutional flows gradually improved. The renewed demand may now be helping Bitcoin break out of its range.
XRP and Solana funds also recorded smaller inflows, while Hyperliquid’s product posted an outflow of roughly $2 million.
The Bitcoin rally inflicted heavy losses on bearish traders, with short crypto positions suffering a record $2.7 billion in liquidations as BTC approached $70,000.
The next major test is whether ETF demand continues. A single strong inflow day supports the breakout but does not prove that the rally will persist.
Sustained ETF purchases over the coming sessions could signal a return of institutional demand, while a sharp reversal in flows could bring the $64,000 support area back into focus.