ChainThink report, August 23: According to Fortune, the U.S. Treasury announced an expansion of long-term Treasury repurchase operations, triggering Bitcoin to break out of a prolonged consolidation range of $62,000 to $67,000. Bitcoin surged above $77,000 on the same day, with this week’s cumulative gain exceeding 20%.

The U.S. Treasury stated it would at least double the scale of long-term Treasury buybacks to alleviate selling pressure in the bond market.

Meanwhile, total U.S. debt has surpassed $40 trillion, compounded by inflation and energy price pressures, intensifying market concerns over dollar purchasing power and long-term fiscal sustainability, prompting capital inflows into alternative assets such as Bitcoin and gold.

Previously, many traders had bet that Bitcoin was capped at $67,000; the breakout triggered short squeeze dynamics, with liquidation-driven buying further pushing prices higher and sparking additional margin calls.

CoinGlass data shows that over $4 billion in cryptocurrency short positions have been liquidated during this rally.

On the policy front, Trump urged Congress to advance the CLARITY Act during a White House cryptocurrency summit this week. CFTC Chair Mike Selig subsequently affirmed the agency’s intent to leverage existing authorities to drive forward government crypto policy initiatives, providing further catalytic momentum to the market.