Bitcoin hits 2-month high above $72k! Watch these 4 factors to see if BTC can move even higher.
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Today, Bitcoin breached $72k - first time since June 2026
Technicals: BTC back above 200-day SMA - first time since Nov 2025
BTC's recent surge due to falling Treasury yields, Trump's CLARITY Act push, "short squeeze", fresh buying from ETFs and "whales"
Crypto bulls still need macro environment to remain conducive and a stronger narrative to take hold
Broadening crypto participation, especially from retail, may help BTC truly embark on next bull run
Today (Thursday, Aug 20th), Bitcoin breached the $72k price for the first time since June 1st.
At the time of writing, prices of the world's biggest and oldest crypto is climbing a further 4% today, adding to yesterday's (Wed, Aug 19) 7% surge - its biggest 1-day climb since March.
Also notably, from a technical perspective, BTC is now trading above its 200-day simple moving average (SMA) - a widely followed technical indicator - for the first time since November 2025!
4 reasons why Bitcoin is soaring
1) Falling US Treasury Yields
US Treasury Secretary Scott Bessent has bought back more long-dated US government bonds, pushing yields lower.
When bond yields fall, the returns on "safe" investments like US government bonds become less attractive.
So, investors look elsewhere for better returns (higher yields), and assets like Bitcoin tend to benefit from that shift in appetite.
SOURCE: Bloomberg
In fact, the inverse correlation (move in opposite directions) between Bitcoin and 10-year Treasury yields, on a 5-day rolling basis over the past year, reads at -0.66 (any correlation above 0.5% indicates a strong relationship).
In other words, take any 5-day period over the past 1 year, and ...
Bitcoin has a high chance - about 60% of the days over the past year - of moving in the opposite direction as 10-year Treasury yields.
… just like it did yesterday (Wed, Aug 19th, 2026).
2) Optimism surrounding Trump's meeting with crypto execs, push for Clarity Act
Yesterday (Wed, Aug 19), President Trump met with Coinbase CEO Brian Armstrong, the Winklevoss twins of Gemini Space station, the co-CEO of Payward (which operates Kraken) Arjun Sethi, as well as Robinhood CEO Vlad Tenev.
After that meeting in the White House, POTUS also urged Congress to pass the CLARITY Act.
Such optimism surrounding clearer crypto regulations helped boost crypto prices across the board.
READ MORE (published May 13th, 2026): CLARITY Act "markup" - here's what you need to know
3) Massive short squeeze
Over $1 billion in Bitcoin short positions were liquidated in roughly one hour on Wednesday, the largest such event since 2021, amplifying the price move.
When traders who bet against Bitcoin (short sellers) are forced to buy it back to cover their losing positions, that sudden surge in buying demand pushes the price higher.
4) ETF inflows and "whale" buying.
US spot Bitcoin ETFs pulled in $517 million on Wednesday alone - the largest daily inflow since May.
These fresh purchases added to the demand from large BTC holders, who themselves added ~43,000 Bitcoin (~$2.75 billion) over the prior 60 days, signaling renewed institutional appetite.
Before anyone gets too carried away ...
It's perhaps prudent to take stock on where Bitcoin actually is, despite its latest price surge:
Bitcoin remains about 42% below its all-time intraday record high of $126,150 posted on 6th October 2025.
BTC is still down over 17% so far in 2026
US spot Bitcoin ETFs (exchange-traded funds) are still posting a net outflow of US$ 4.2 billion year-to-date.
This week's surge in BTC prices hints at a market that is showing its potential for a rebound, but not yet seeing a broad-based recovery.
Beyond sudden price spikes, crypto still needs a conducive macro environment for a more compelling narrative to take hold.
Bitcoin's next bull run remains contingent on broadening participation and sustained fresh demand, particularly from the retail side.
Hence, pay attention to those 4 factors listed above:
Treasury yields (as they pertain to market liquidity conditions)
Crypto regulations
"Short squeeze" episodes (as sellers get closed out)
Fresh demand inflows, from retail investors and "whales"
Should these factors align, perhaps then we can say with greater confidence that Bitcoin has embarked on its next bull run.
Till then, BTC bulls (those hoping prices will go higher) are enjoying their latest bout of sunshine as much as they can, for now.
DISCLAIMER: This article is provided for general information purposes only and reflects publicly available data and research at the time of writing. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Past performance is not indicative of future results. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.