TradingKey - Short sellers face another brutal bloodbath as Bitcoin surges past $75,000 and Ethereum climbs above $2,300.

During the Asian trading session on August 21, the cryptocurrency market extended its strong rebound, surging over 6% today as total market capitalization climbed above $2.5 trillion, hitting a three-month high. Among them, Bitcoin (BTC) jumped over 8%, breaking through the $75,000 level; Ethereum (ETH) rose over 4%, climbing above $2,300; Binance Coin (BNB) gained nearly 6%, crossing $650; and XRP (XRP) surged 18%, breaching $1.3.

Price performance of the top 10 cryptocurrencies by market cap, Source: CoinMarketCap

Cryptocurrencies surged across the board once again, dealing another heavy blow to short sellers. Over the past 24 hours, total liquidations across the network exceeded $1.2 billion, with short liquidations accounting for nearly $1.1 billion, or 92%; BTC and ETH remained the main liquidated coins. Yesterday, short sellers had already been liquidated for over $2.7 billion.

On August 19, the U.S. Treasury Department announced a bond buyback plan of at least $4 billion alongside a pullback in U.S. Treasury yields, easing market concerns over a tight monetary environment. A weakening U.S. Dollar Index further enhanced the appeal of risk assets and digital assets, fueling a broad-based rally in cryptocurrencies.

Yesterday, U.S. Treasury Secretary Bessent stated that "the upper limit for a single Treasury buyback operation could exceed the $4 billion we previously announced," driving the crypto market sentiment index further up to 69 into "Greed" territory as market FOMO sentiment continued to warm up. However, the Fear & Greed Index has not yet reached 80, indicating that market sentiment has not reached extreme greed, though the risk of a pullback is also rising.

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