Bitcoin Breaks Above KRW 100,000,000: Why the Recovery Above USD 70,000 Coincided With a Short Squeeze
▼▼ 제품 구매하러 가기 ▼▼
✱ 이 포스팅은 토스쇼핑 쉐어링크 활동의 일환으로, 이에 따른 일정액의 수수료를 제공받습니다. 필라델피아 크림치즈 미니, 41g, 16개 https://toss.im/_m/9wv9WhKp
필라델피아 크림치즈 미니, 41g, 16개 | 토스쇼핑필라델피아 크림치즈 미니, 41g, 16개, 리뷰 1,037개 · 평점 4.7점. 모레 도착 예정toss.shopping
Bitcoin climbed back above KRW 100,000,000 on South Korean exchanges on 2026-08-20. As of 7:20 p.m., Bitcoin was trading at KRW 100,018,000 on Bithumb, while overseas it surpassed USD 70,000 and reached approximately USD 71,700 during intraday trading. The rally drew attention to both discussions over US cryptocurrency regulation and the forced liquidation of positions betting on falling prices.
However, a strong rebound in a single day does not necessarily confirm a long-term upward trend. Although Bitcoin recovered above USD 70,000 that day, it was still down approximately 18% since the beginning of 2026.
When Did Bitcoin Cross KRW 100,000,000 on South Korean Exchanges?
As of 7:20 p.m. on 2026-08-20, Bitcoin was trading at KRW 100,018,000 on Bithumb. That represented an increase of 9.80% compared with 24 hours earlier. At the same time, Ethereum rose 16.39% and recovered above KRW 3,000,000, while Solana and XRP gained 8.32% and 12.46%, respectively.
KRW 100,000,000 serves as a key price threshold for Bitcoin trading in South Korean won, while overseas markets were also closely watching whether Bitcoin would break above USD 70,000. Reuters reported on August 20 that Bitcoin had climbed to approximately USD 71,700, representing a gain of 3.4% at the time.
According to the author's calculation, USD 71,700 is USD 1,700, or approximately 2.43%, higher than USD 70,000.
The calculation is `(71,700-70,000)÷70,000×100`.
However, it would be inappropriate to assume that Bitcoin prices quoted in South Korean won and US dollars represent identical market prices simply by converting them using an exchange rate. Trading times and supply-and-demand conditions differ between exchanges.
What Are the Expectations Surrounding US Cryptocurrency Regulation?
The legislation attracting market attention is the Digital Asset Market Clarity Act of 2025, commonly known as the CLARITY Act. The bill seeks to establish a regulatory framework for digital commodities and define the respective jurisdictions of the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
US President Donald Trump urged Congress to pass the CLARITY Act during a meeting with cryptocurrency industry executives at the White House on August 19. Bitcoin subsequently moved above USD 70,000, while US cryptocurrency-related stocks also advanced.
The important distinction is that the CLARITY Act has not yet become an enacted law.
According to official US congressional records, H.R.3633 passed the House of Representatives on 2025-07-17 by 294 votes in favor and 134 against. It was subsequently referred to the Senate Committee on Banking, Housing, and Urban Affairs. The legislative process has not been completed, including the presidential signature required for enactment.
Therefore, the market movements observed on August 20 are more accurately understood as a reaction to political efforts urging passage of the bill, rather than the implementation of new regulations that have already been finalized. Reuters also described the CLARITY Act that day as legislation stalled in the Senate.
Why Does a Short Squeeze Amplify Bitcoin's Price Gains?
A short squeeze occurs when investors who have bet on falling prices face an unexpected sharp increase and begin closing their positions by buying back the asset to limit their losses. These purchases can trigger a chain reaction.
Market data reported during this rally indicated that more than USD 1,000,000,000 in Bitcoin short positions had been liquidated within one hour. MarketWatch also reported that on August 19, Bitcoin rose more than 6% and broke above USD 69,000, triggering over USD 1,000,000,000 in short liquidations within 60 minutes.
The mechanism is straightforward.
Investors who open short positions expecting prices to decline face mounting losses when prices rise rapidly instead. If their margin falls below a certain threshold, an exchange may forcibly close their positions. Closing short positions involves buying transactions.
This creates a potential chain reaction: rising prices → growing losses on short positions → forced liquidations → additional buying → further price increases.
Therefore, interpreting the entire gain on a day marked by a short squeeze as fresh demand from spot-market buyers may misrepresent actual market conditions. Purchases generated by forced liquidations can also account for part of the price increase.
There Are More Important Numbers to Watch Than the Break Above KRW 100,000,000
Focusing solely on the KRW 100,000,000 threshold could lead to a misleading assessment of Bitcoin's market position. Although Bitcoin recovered above USD 70,000 in the short term, its year-to-date return for 2026 remained approximately -18%, according to Reuters.
In other words, a one-day rebound in the 3% range, or a gain of approximately 10% over 24 hours on South Korean exchanges, is not the same as a complete recovery in Bitcoin's annual performance.
When short liquidations contribute to a rapid price increase, it is particularly important to determine whether spot-market buying continues after liquidation volumes decline. A short squeeze can accelerate a rally, but it does not guarantee the direction of subsequent price movements.
This distinction is even more important for investors using leverage. Cryptocurrency prices are highly volatile even in spot markets, but in futures and margin trading, positions can be liquidated much more quickly when prices move against expectations, potentially resulting in losses of the invested principal.
What Would Change if the CLARITY Act Passes?
The bill currently before Congress focuses on establishing a market structure that determines which regulatory frameworks apply to different types of digital assets.
According to the bill's description published by the US Congress, digital commodity trading would generally fall under CFTC regulation. The legislation also includes separate standards concerning SEC registration requirements and SEC jurisdiction for digital commodities and transactions that meet specified conditions. It further contains requirements relating to trade monitoring, recordkeeping, and the management of customer assets.
However, as of 2026-08-20, the bill had not yet become law.
Overlooking this distinction could easily lead to the mistaken belief that the United States has finalized new cryptocurrency regulations. What can currently be confirmed is that President Trump urged lawmakers to pass the bill, the market reacted to that development, and the final congressional legislative process remains incomplete.
What Should Investors Check to Assess Whether Bitcoin Will Continue Rising?
The sharp price increase on 2026-08-20 alone cannot determine Bitcoin's future direction. Because this rally reflected both expectations that regulatory uncertainty could ease and large-scale short-position liquidations, subsequent price movements should be evaluated by examining supply and demand after the immediate effects of those liquidations fade.
The first factor is whether Bitcoin can maintain its price after recovering above USD 70,000. Briefly crossing a threshold during a single trading day is different from holding that price level over several trading days.
The second factor is whether buying pressure continues after forced liquidation volumes decline. Buying pressure generated by a short squeeze may weaken as the number of remaining positions subject to liquidation decreases.
The third factor is the actual legislative progress of the CLARITY Act. A president urging passage of a bill and the bill receiving final approval are not the same event. Investors need to monitor whether the Senate and subsequent stages of the legislative process actually move forward.
Finally, investors trading in South Korean won should monitor both overseas Bitcoin prices and prices on domestic exchanges. Domestic prices may not move by exactly the same percentage as US dollar prices because of fluctuations in the won-dollar exchange rate and differences in supply and demand across exchanges.
It is clear that Bitcoin recovered above KRW 100,000,000 on August 20, but this sharp rally reflects a combination of longer-term market trends and short-term liquidation-driven factors. Rather than focusing on a single price figure, investors should separately examine whether Bitcoin holds above USD 70,000, whether buying demand persists after short liquidations subside, and the actual legislative status of the CLARITY Act to better understand the nature of this rebound.
Cryptocurrency prices can fluctuate dramatically within short periods, and leveraged trading carries greater risks of losses and forced liquidations than spot trading. Breaking above a particular price level does not guarantee future profits or additional gains.
※ This article is provided for informational purposes to help readers understand market developments and does not constitute an investment recommendation regarding any particular security or asset. All final investment decisions and responsibility rest with the individual investor.
▼▼ 제품 구매하러 가기 ▼▼
✱ 이 포스팅은 토스쇼핑 쉐어링크 활동의 일환으로, 이에 따른 일정액의 수수료를 제공받습니다. 필라델피아 크림치즈 미니, 41g, 16개 https://toss.im/_m/9wv9WhKp
필라델피아 크림치즈 미니, 41g, 16개 | 토스쇼핑필라델피아 크림치즈 미니, 41g, 16개, 리뷰 1,037개 · 평점 4.7점. 모레 도착 예정toss.shopping