Crypto liquidations hit $2.97B, highest since Oct. crash, after U.S. Treasury announces doubling of long-term bond buybacks

Published Aug 20, 05:17 PM UTC

On August 19, 2026, the crypto market saw $2.97 billion in liquidations, the highest since the Oct. 10, 2025 flash crash. The event was triggered by a U.S. Treasury announcement that it would at least double longer-term government bond buybacks to improve liquidity and reduce stress in Treasuries. This loosened financial conditions, making risk assets like Bitcoin more attractive. Crypto prices rallied sharply, with Bitcoin surpassing $72,000 for the first time since June 1, up 11.5% in 24 hours. Ether rose 19% to $2,275.80, and XRP gained 19% to $1.21. The total crypto market cap increased 10% to $2.52 trillion. The liquidation figure was driven primarily by short positions worth $2.73 billion being wiped out, as traders who had held massive short positions due to months-long bearish conditions rushed to cover. The Oct. 10, 2025 crash had been triggered by President Trump's tariff threat against China, resulting in $19.24 billion in total liquidations.