Bitcoin reached $69,000 on Wednesday, marking its highest level in about two months. Meanwhile, ether climbed 10% and returned above $2,000. The crypto rally followed new Treasury buyback plans and proposed changes to U.S. cryptocurrency regulations.
The U.S. Treasury announced plans to expand certain buyback operations involving longer-dated government bonds. The department will increase the maximum operation size from $2 billion to at least $4 billion.
The new policy will begin on September 9 and continue through November 4. According to Treasury officials, larger operations should provide additional liquidity support across longer-term bond markets.
As a result, investors appeared more willing to increase exposure to riskier assets. Consequently, major cryptocurrencies gained significant momentum during Wednesday’s trading session.
Bitcoin touched $69,000 for the first time in roughly two months. At the same time, ether jumped 10% and reached $2,000 for the first time since May.
Additionally, Solana, XRP, and several other major cryptocurrencies gained more than 5%. Therefore, the crypto rally extended beyond the two largest digital assets.
However, the rapid market gains also created substantial losses for leveraged traders. Cryptocurrency markets recorded approximately $1.92 billion in liquidations during the previous 24 hours.
Furthermore, around $1.7 billion of those liquidations occurred within just four hours. Reported figures may also underestimate the actual scale of liquidations across global trading platforms.
Meanwhile, the Treasury announcement followed another major development involving U.S. cryptocurrency regulation. On Tuesday, the Securities and Exchange Commission proposed new rules covering certain crypto investment contracts.
The proposal would create two exemptions for qualifying crypto offerings under specific conditions. One exemption would allow issuers to raise up to $5 million over four years.
Another exemption would permit companies to raise as much as $75 million annually. However, companies would need to meet disclosure and other regulatory requirements.
Together, these developments strengthened investor confidence across digital asset markets. In addition, several cryptocurrency executives were scheduled to meet President Donald Trump at the White House.
The meeting added another important development to an already active day for the crypto industry. Nevertheless, market attention remained focused on liquidity, regulation, and improving cryptocurrency prices.
Investors also continued monitoring Bitcoin’s recovery following its recent market correction. Earlier, analysts suggested that selling pressure could be approaching a potential turning point.
Historical market cycles have also influenced expectations surrounding Bitcoin’s next market phase. Previous bear markets generally required more than a year to reach their deepest declines.
Bitcoin has now entered roughly its eleventh month following its previous major market peak. Consequently, some investors expect accumulation could develop between September and November.
Meanwhile, crypto-related stocks also benefited from the crypto rally. Fold Holdings recorded one of the strongest gains among publicly traded digital asset companies.
BitGo and American Bitcoin also posted strong advances during Wednesday’s trading session. At the same time, Strategy and Bitmine gained approximately 10%.
Those companies remain closely connected to corporate cryptocurrency treasury strategies. Therefore, stronger digital asset prices can quickly improve investor sentiment toward their shares.
Overall, the crypto rally reflects several developments arriving at the same time. Treasury liquidity measures, regulatory proposals, and renewed cryptocurrency demand all supported the market advance.
However, digital assets remain highly volatile, particularly when leveraged trading activity increases. The substantial liquidation figures demonstrate how quickly market movements can affect traders.
For now, Bitcoin’s move toward $69,000 represents an important recovery milestone. Ether’s return above $2,000 also signals stronger momentum across major cryptocurrency markets.
