Bitcoin Nears $72K as Short Liquidations Hit $3.1B

Bitcoin approached $72,000 in a second consecutive day of gains as crypto short liquidations surpassed $3.1 billion, according to Cointelegraph. Ether jumped 18% to $2,250 as Bitcoin topped $69,000 in a broad crypto rally, with detailed analysis from Forexlive showing Bitcoin advanced from above $65,000 to approximately $69,258. Ethereum surged approximately 26% in only eight hours and gained 18.1% on the day, moving from the lower boundary of its six-month value area near $1,844 to its upper boundary around $2,309. The rally featured participation from major altcoins including Solana (+10.3%), XRP (+10.3%), Uniswap (+9.9%), Aave (+9.8%), NEAR (+9.2%), and Chainlink (+8.5%). One trader who previously made $49 million shorting crypto lost $24 million on ether in 12 seconds, CoinDesk reported.

US spot Bitcoin ETFs recorded $517 million in inflows while Ethereum ETFs pulled $189 million in the biggest institutional flows in months, according to CoinDesk. Detailed flow data from Forexlive showed US spot Bitcoin ETFs attracted $297.5 million on August 17 and another $189.3 million on August 18. Spot Ethereum ETFs added $71.4 million on August 18, led by BlackRock's ETHA. The sustained two-day inflow pattern represented a clear improvement from outflows seen during the previous week, providing institutional support beyond short covering or leveraged speculation. Forexlive analysis noted that continued demand would make it easier for Bitcoin and Ethereum to defend their newly recovered levels.

President Trump spoke from the White House on Wednesday urging the Senate to pass the CLARITY Act to keep the country "ahead of China," Cointelegraph reported. Trump also said the CFTC was pursuing compliant US access for Hyperliquid, though no formal regulatory plan has been released; HYPE token reached $72 and jumped 20% following the statement. Representative Gallego warned that the White House has not provided point-by-point feedback on a bipartisan ethics proposal as a September vote approaches, cautioning that a rushed CLARITY Act vote could set legislation back. Crypto PAC Fairshake notched primary wins but lost a $2 million Florida race, with a spokesperson saying the PAC was "just getting started" on expenditures to fill Congress with crypto-friendly lawmakers.

BitGo Korea secured VASP registration for institutional crypto custody from Korean regulators, with the registration accepted on Tuesday, two days before stricter VASP entry requirements took effect, Cointelegraph reported. The registration expands BitGo's institutional custody footprint in Asia as regulatory frameworks tighten across the region. Bitcoin.com integrated USDU, the UAE's first central bank-registered US dollar stablecoin, into its self-custodial wallet, expanding access to the stablecoin as it builds distribution beyond institutional channels.

GnosisDAO approved Gnosis Chain for transition to an Ethereum Economic Zone rollup, enabling it to settle directly to Ethereum rather than continue with an independent validator set, Cointelegraph reported. The approval marks a significant shift in the protocol's architecture toward tighter integration with the Ethereum mainnet. The move aligns with broader trends of layer-2 solutions seeking more direct settlement relationships with Ethereum to enhance security and interoperability.

The crypto market faces a critical test of whether Bitcoin can sustain levels above the former $66,900 range ceiling and build acceptance closer to $70,000, according to Forexlive analysis. Continued ETF inflows and persistent Ethereum strength would strengthen the recovery case, while a quick reversal below the breakout area alongside renewed ETF outflows or fading altcoin breadth would increase the probability of another relief rally rather than sustained trend repair. Macro conditions including Treasury yields and US dollar weakness after larger buybacks of long-dated government bonds have improved the environment for risk assets. The September vote timeline for the CLARITY Act remains in focus as industry participants await point-by-point White House feedback on the bipartisan proposal.