Bitcoin Erupts Past $71,000, Wiping Out $3 Billion in Shorts

Bitcoin broke above $71,000 on Aug. 20, 2026, for the first time since June, triggering the largest short-liquidation event in crypto history. The cryptocurrency traded at $71,861, up 11.6% over 24 hours, after clearing dense short-liquidation levels between $65,000 and $67,000 . Short sellers lost roughly $3 billion over 24 hours against just $263.5 million on the long side, with more than $1 billion cleared in a single hour . The rally was primarily driven by macro factors rather than crypto-specific news, following the U.S. Treasury Department's announcement it would double long-dated bond buybacks to $4 billion per operation starting Sept. 9 . Ethereum rose about 19% to reclaim the $2,200 level, while crypto-linked stocks surged . President Donald Trump later called for Congress to pass the CLARITY Act, giving the rally a second leg . The breakout ended a six-week stretch of range-bound trading between $61,500 and $66,900 that had held since July 8 .