$2.7 billion in shorts just got liquidated. Bitcoin hit $72,000.
The Treasury doubled its bond buybacks. $2.74 billion in short positions got liquidated in a single day. Trump held a crypto meeting at the White House. And Bitcoin hit $72,000 in three days.
By Lantern Finance
Hey Lantern Community,
The Treasury doubled its bond buybacks. $2.74 billion in short positions got liquidated in a single day. Trump held a crypto meeting at the White House. And Bitcoin went hit $72,000 in three days.
But first, market update!
The biggest short squeeze since 2021
Bitcoin sat in a tight range between $62,800 and $64,900 for ten days. Then on August 19, it broke out, and the short sellers got run over.
$2.74 billion in short positions were liquidated in a single day. That's the largest short liquidation event since at least 2021, surpassing the October 2025 crash. BTC went from $64,664 on Tuesday to $71,760 by Wednesday morning. That's a 14% move in under 72 hours.
The trigger was a combination of things hitting at once. The U.S. Treasury doubled the size of its bond buybacks on August 19, injecting liquidity into the market and weakening the dollar. That's a risk-on signal across every asset class. Bitcoin responded immediately.
Spot Bitcoin ETFs added $517 million on August 19 alone, the largest single-day inflow in 3.5 months. Ether ETFs added $189 million the same day. Combined, that's roughly $700 million in one session.
Strategy appears to have resumed buying after five weeks of either selling or holding flat. MSTR shares jumped 12.68% on Wednesday. Coinbase gained 11%. Circle added 10%.
The Fear & Greed index was at 41 on Sunday. It's at 62 today.
Trump held a crypto meeting at the White House
On August 20, Trump hosted a meeting with tech CEOs at the White House and urged Congress to pass the CLARITY Act. Brad Garlinghouse (CEO of Ripple) attended the meeting too.
The CLARITY Act's first procedural vote is still scheduled for 2:15pm ET on Tuesday, September 15, when the Senate returns from recess. The White House engagement is new. Whether it moves any Democratic votes remains to be seen.
Brad Garlinghouse's take? Nearly 1/4 Americans hold crypto and it is clear the government increasingly needs the support from crypto voters.
XRP reclaimed $1
XRP spent nine days below $1, bottoming at $0.985 on August 17. Today it's at $1.19, up 20% from the low. It's outperforming Bitcoin on a percentage basis during this rally.
When XRP leads instead of lagging, it usually means retail is re-entering. The broader altcoin rally supports that read: ETH is up 21.6% from Sunday, SOL is up 13%, and even ADA is up 10.8%.
For borrowers holding XRP as collateral, the move from $0.99 to $1.19 adds meaningful cushion to your LTV. If you were near a liquidation threshold last week, you have breathing room now.
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Book a 15-minute video call and we'll walk you through the dashboard, explain how Buy Boost works, or help you figure out the right loan for your situation. New to Lantern? This is the fastest way to get comfortable.
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The Treasury injected liquidity, the shorts got squeezed, and the White House is pushing crypto legislation. That's three tailwinds hitting at once. Whether it holds depends on what happens next week. But the direction has changed.
If you're holding through the volatility and want liquidity without selling, Bitcoin-backed loans at Lantern start at 8%, funded same-day including weekends.
Borrow against your crypto here: https://lantern.finance/borrow
Until next week,
The Lantern Team
This newsletter is for educational purposes only and does not constitute financial advice. Always consult with your financial advisor before making lending decisions.
