Bitcoin surged nearly 6% to above $69,000 on Wednesday, reclaiming a level not seen since early June. The rally was triggered by the Treasury Department’s announcement to double purchases of older long-term government bonds, which markets interpreted as a quiet form of quantitative easing that weakens the dollar. Short sellers were forced to cover roughly $1.5 billion in positions, including $700 million bought in a single minute, potentially the largest short squeeze in Bitcoin’s history. Bitcoin had fallen about 40% from the $115,000 level where it traded during October’s crash, which triggered more than $19 billion in liquidations. U.S. spot Bitcoin ETFs drew roughly $1 billion in inflows during the first two weeks of August, while Ethereum and Zcash each rose 9%.
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