Bitcoin experienced a volatile yet ultimately flat trading session, swinging between $78,095 and $79,650 before settling near $78,600. The price action followed a $6 billion long-term debt buyback by the U.S. Treasury, which tripled levels seen prior to the recent intervention announcement.
During early Wednesday trading, bitcoin breached $79,000 and peaked at over $79,650 around 4:35 a.m. EST. The price subsequently retreated as markets reacted to reports of new fighting in the Middle East and escalating conflict involving the U.S. and Iran. The geopolitical tension caused Brent crude oil prices to top $100 per barrel for the first time since July 2.
After dipping below $79,000 and later tumbling to $78,095 following a sell-off, a relief rally brought bitcoin to just above $78,600 by midday, leaving its market capitalization nearly unchanged at $1.57 trillion. The flat price movement triggered $59 million in bitcoin liquidations, split evenly between long and short bets. Across the broader cryptocurrency market, total liquidations reached $223 million, with liquidated long positions accounting for just over $120 million.
The flat performance contrasted with bitcoin's breakout on August 19, when a previous U.S. Treasury bond buyback announcement preceded a multi-week price increase. While analysts had anticipated the latest intervention to trigger a further rally, yields on U.S. Treasuries instead rallied following the announcement. According to a post by the Kobeissi Letter on X, the bond market's reaction could push the 10-year note yield above 5.00% if the conflict continues.
