Bitcoin Surges Past $77,000 on Treasury Buyback Boost — Is Bitcoin a Good Investment Right Now?
Bitcoin climbed as high as roughly $79,500 this week before settling above $77,000 — its biggest weekly rally in two years — after a surprise US Treasury announcement triggered a multi-billion-dollar short squeeze across crypto markets. Here's what happened, and how UK investors might weigh up whether Bitcoin belongs in a portfolio.
Key takeaway
- Bitcoin jumped around 8–9% within hours of a US Treasury announcement on 19 August 2026 that it would double its long-term bond buyback operations, then kept climbing over the following days.
- The move triggered a short squeeze estimated at $2.7–3.5 billion across crypto derivatives, depending on the data provider.
- By the weekend, Bitcoin was trading around $77,000, still well below its January 2026 high of around $94,800–$95,000 and October 2025's all-time high.
- Gold rallied on the same news for different reasons, reviving debate over whether Bitcoin behaves more like a risk asset or a safe haven.
- Cryptoassets are highly volatile and largely unregulated in the UK, with no consumer protection — this is not personalised investment advice.
~$77,000
Bitcoin price, w/e 23 Aug 2026
+11%
Bitcoin's rally this week to a ~$79,500 intraday high (CryptoSlate)
$2.7–3.5bn
Short squeeze size — range across sources
*Yahoo Finance/investing.com
What Happened to the Bitcoin Price This Week
Bitcoin began the week near $62,800 (Briefs.co, 23 August 2026). On Wednesday 19 August 2026, it jumped sharply — Forbes and TechTimes both put the intraday move at around $69,700–$69,750, a roughly 8–8.7% gain from the day's low near $64,100. The rally continued into Thursday, with CoinDesk reporting Bitcoin touching $72,801, before accelerating further on Friday to an intraday high of $79,200–$79,500 (Yahoo Finance/Investing.com; CryptoSlate, both 21–22 August 2026).
By Friday's close it had pulled back to around $76,943, up roughly 6% on the day (Briefs.co, 23 August 2026), and was still trading just above $77,000 over the weekend. Sources vary slightly on exact intraday figures, which is normal given the pace of the move — IG's editorial team has cross-checked the broad price path across Forbes, TechTimes, CoinDesk, Yahoo Finance/Investing.com and CryptoSlate, and readers should check a live price feed for the current spot price.
Why a US Treasury Bond Move Sparked a Crypto Rally
The catalyst was not a crypto-specific event. On 19 August 2026, US Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buyback operations — from $2 billion to at least $4 billion per operation — covering 10-to-20-year and 20-to-30-year securities, effective 9 September 2026 (Bit.com, 20 August 2026).
The announcement came a day after the 30-year Treasury yield hit a roughly 19-year high of 5.34–5.337%. Following the news, that yield fell back to around 5.19% (CryptoNews, 21 August 2026). Falling government bond yields reduce the opportunity cost of holding assets that pay no interest, which is one reason both Bitcoin and gold rallied on the same announcement.
The Short Squeeze Explained
A short squeeze happens when traders who had bet on falling prices are forced to buy back their positions as prices rise, which pushes prices up further still. Estimates of the size of this squeeze vary by source: CryptoNews put it at $3.5 billion across crypto derivatives, Briefs.co reported $2.7 billion, and TechTimes cited $3 billion in short-position liquidations (all 20–21 August 2026). The Kobeissi Letter, cited by CryptoNews, noted crypto markets added around $280 billion in market capitalisation over 24 hours during the move — a scale consistent with what CryptoNews separately described as the 7th-largest liquidation event in crypto market history.
Losses can exceed your initial deposit when trading cryptoassets with leverage, and this kind of rapid, leverage-driven move can reverse just as quickly as it appeared.
Is Bitcoin a Good Investment Right Now?
This is a genuinely two-sided question, and this article does not offer personalised advice. Here is the balance of the case being made on each side by market commentators, so you can weigh it up for your own circumstances.
The Case For
- Token Bay Capital's Lucy Gazmarian told CNBC's Squawk Box Europe on 21 August 2026 that she sees crypto as nearing the end of its bear market cycle, framing the current move as a turning point rather than a one-off spike (as reported by Briefs.co, 23 August 2026).
- Spot Bitcoin ETF inflows of roughly $1.6 billion accompanied this week's rally, alongside the short squeeze (CryptoSlate, 22 August 2026).
- The CLARITY Act, a proposed US crypto market-structure bill, remains a potential medium-term regulatory tailwind if passed (TechTimes, 20 August 2026).
The Case Against
- Gazmarian also said she expects one further sell-off of around 20% before any durable recovery, consistent with patterns in previous cycles (Briefs.co, 23 August 2026).
- Even after this week's rally, Bitcoin remains well below both its January 2026 high (around $94,800–$95,000) and its October 2025 all-time high (Fortune; Briefs.co, both 23 August 2026).
- The rally was driven substantially by a leveraged short squeeze rather than sustained new demand, which analysts caution can unwind quickly (CryptoNews, 21 August 2026).
- Cryptoassets are highly volatile and largely unregulated, with no consumer protection in the UK.
How Bitcoin Compares With Gold This Year
Gold and Bitcoin both rallied on the same Treasury news, but their year-long paths have diverged sharply. Gold sits close to its January 2026 all-time high — reported between roughly $5,300 (AP via Manila Times) and $5,589 an ounce (Bitsgap, 22 August 2026) — while Bitcoin remains roughly 40–46% below its October 2025 peak even after this week's move (Fortune; Bitsgap, both 22–23 August 2026).
Bitcoin's rolling correlation with gold has fallen from a peak of 0.289 in October 2025 to as low as -0.88 by spring 2026 (CryptoQuant data via Bitsgap, 22 August 2026) — among the lowest readings since the 2022 bear market. That suggests Bitcoin has behaved more like a risk asset than a 'digital gold' safe haven for much of the past year, even though both moved together this week.
| Gold | Bitcoin | |
| 2026 high | ~$5,300–5,589/oz (Jan 2026) | ~$94,800–95,000 (Jan 2026) |
| This week's move | Up to ~$4,600+/oz | Up to ~$79,500, settled ~$77,000 |
| Vs all-time high | Close to it | ~40–46% below Oct 2025 peak |
Past performance is not a reliable indicator of future results.
How UK Investors Can Get Exposure
UK retail investors researching cryptocurrency exposure can consider a general investment account that supports crypto alongside traditional markets.
Whatever the route, position sizing and risk management tools such as stop-loss orders are worth understanding before adding any volatile asset to a portfolio.
IG's risk management tools and a demo account can help you get familiar with how volatile assets move before committing real capital.
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FAQ
Why did Bitcoin jump this week?
The US Treasury announced on 19 August 2026 that it would double its long-term bond buyback operations, which pushed bond yields down and triggered a multi-billion-dollar short squeeze across crypto markets.
Is Bitcoin a good investment for beginners?
Cryptoassets are highly volatile and largely unregulated with no consumer protection, so this is not a decision to take lightly. This article is informational and does not constitute personalised advice — consider your own circumstances and risk tolerance, or seek independent advice.
Is Bitcoin still below its all-time high?
Yes. Even after this week's rally to around $77,000–$79,500, Bitcoin remains well below its October 2025 all-time high, according to figures reported by Fortune and Briefs.co on 23 August 2026.
Tax on cryptoasset profits may apply and depends on individual circumstances. Seek independent advice.
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