Bitcoin breaks above $71,000 amid Treasury pivot and political support

Bitcoin surged above 71,000 on August 20, 2026, breaking out of a weeks-long trading range as a U.S. Treasury policy shift and renewed political support for crypto legislation combined to fuel a broad market rally. The world's largest cryptocurrency climbed more than 5% on the day, with other major digital assets like ether also posting sharp gains. The move marked a significant breakout after Bitcoin had spent roughly six weeks trading between approximately 62,000 and 66,000.

The rally was triggered by a key decision from the U.S. Treasury, which announced it would double the size of its long-term bond buybacks to at least 4 billion per operation, starting in September 2026. This move, aimed at shoring up market liquidity, sent long-term Treasury yields lower and improved appetite for riskier assets. The 30-year yield fell to around 5.19% following the announcement, down from a 19-year high of 5.337%. Market analysts noted that lower yields typically increase the appeal of higher-risk assets like Bitcoin.

Political developments provided an additional catalyst. President Donald Trump renewed his call for Congress to pass the Clarity Act, legislation designed to establish clearer...