Bitcoin Breaks Above USD 70,000 Again: Why Trump's Push for the CLARITY Act Doesn't Tell the Whole Story
Bitcoin has once again climbed above USD 70,000. As of 2026-08-21 at 10:28 a.m. Korea time, the rally cannot be explained solely by U.S. President Donald Trump's call for Congress to advance cryptocurrency regulation legislation. Instead, the sharp gains appear to reflect several developments occurring at roughly the same time: falling interest rates following an expansion of U.S. long-term Treasury bond purchases, expectations of reduced regulatory uncertainty, and large-scale short-position liquidations.
During U.S. trading hours on August 20, Bitcoin rose above USD 70,000 and reached the USD 71,000 range. It subsequently surpassed USD 72,000 at one point. This marked the first time Bitcoin had exceeded USD 70,000 since June. However, a strong rebound does not mean that U.S. cryptocurrency regulation legislation has passed or that a sustained Bitcoin uptrend has been confirmed.
How Much Has Bitcoin Risen?
During U.S. trading on August 20, Bitcoin surpassed USD 70,000 and was trading around USD 71,500, depending on the time of reporting. The upward momentum continued into Asian trading hours, with Bitcoin also moving above USD 72,000 during part of the session.
At one point that day, Bitcoin was recorded at USD 71,505, up 3.48%. Another data source showed a daily gain exceeding 10%. The difference reflects variations in the reference times used for prices and the starting points used to calculate 24-hour percentage changes.
Therefore, rather than focusing simply on how many percentage points Bitcoin gained, the clearest shared fact is that Bitcoin recovered above USD 70,000 for the first time since June.
Compared with USD 70,000, USD 71,505 was USD 1,505 higher.
According to the author's calculation:
(71,505 - 70,000) ÷ 70,000 × 100 = approximately 2.15%
This means Bitcoin was approximately 2.15% above the USD 70,000 breakout threshold at that observation point.
However, Bitcoin has continued to experience substantial volatility in 2026. Even during this rebound, it remained approximately 18% below its level at the beginning of the year. Another calculation placed it approximately 43% below the all-time high recorded on October 2025. Recovering USD 70,000 was meaningful, but Bitcoin still had considerable ground to cover before returning to its previous peak.
What Exactly Did Trump Call For?
U.S. President Donald Trump met with cryptocurrency industry representatives at the White House on August 19 and urged Congress to advance the CLARITY Act. The central message was that Congress should move forward and pass a 'fair version' of the legislation.
The CLARITY Act is formally known as the Digital Asset Market Clarity Act. It is legislation intended to establish clearer legal distinctions within the regulatory framework governing the U.S. digital asset market.
A central objective is to clarify which digital assets fall under securities regulation and which are regulated as commodities. The legislation also seeks to define the respective responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
This is precisely why the cryptocurrency industry considers the legislation important. If Congress establishes market structures and supervisory authority through legislation, rather than leaving operating rules subject primarily to executive branch or regulatory agency policies, companies may find it relatively easier to develop long-term business plans.
However, Trump's call for the legislation to pass and the legislation actually becoming law are two entirely different stages.
The CLARITY Act has already passed the House of Representatives, but Senate proceedings remain unfinished as of 2026-08-21. Disagreements also persist over how the legislation should address restrictions on conflicts of interest involving politicians' cryptocurrency businesses.
Therefore, describing the latest price rally as confirmation that U.S. cryptocurrency regulations have been relaxed would go beyond what the currently verified developments support.
Why Trump's Remarks Alone Cannot Explain the Rally
President Trump's comments were one positive development for the cryptocurrency market, but a more direct change was taking place in the U.S. bond market at approximately the same time.
The U.S. Treasury expanded its purchases of long-term Treasury securities through its buyback program. A buyback is a process in which the government repurchases Treasury securities it previously issued into the market.
With sharply rising long-term Treasury yields putting pressure on risk assets, the Treasury decided to increase its long-term bond purchases from approximately USD 2,000,000,000 per operation to at least USD 4,000,000,000. The purchases include Treasury securities with maturities of 10 years or longer, and the expanded program is scheduled to take effect from September.
Treasury yields matter to cryptocurrency investors for a specific reason.
When Treasury yields rise, investors can earn higher returns by holding relatively safe bonds. Conversely, when yields fall, the relative return advantage of bonds over more volatile assets, such as stocks and Bitcoin, narrows.
Following the Treasury's announcement, long-term Treasury yields declined, creating a more favorable market environment for risk assets, including Bitcoin.
The latest rally is therefore more consistent with the observed market developments when viewed as the combined result of several events occurring within a short period:
President Trump's call for Congress to advance the CLARITY Act
Expanded U.S. Treasury buybacks of long-term government bonds
Declining long-term Treasury yields
Liquidations of existing bearish Bitcoin positions
Market analysts also suggested that after Bitcoin had traded within a narrow price range for several weeks, its initial upward movement triggered additional buying as traders closed short positions, amplifying the rally.
A short position is a trade that bets on falling prices. If prices instead rise sharply, traders may need to buy Bitcoin to close their positions and prevent further losses. When many traders make these purchases simultaneously, the resulting buying pressure can accelerate an already rising market.
What Would Change If the CLARITY Act Passes?
The central purpose of the CLARITY Act is not to eliminate all cryptocurrency regulations. Rather, it is to clarify which regulatory agencies oversee particular digital assets and transactions.
Several major questions remain unresolved in the U.S. digital asset market, including the distinction between tokens classified as securities and digital commodities, oversight of spot markets, and registration requirements for exchanges and intermediaries.
The legislation includes a framework establishing digital commodities as a separate category and expanding the CFTC's responsibilities. At the same time, it preserves the SEC's authority in areas governed by securities law, including certain fundraising activities involving investment contracts.
In other words, it would also be misleading to characterize the legislation simply as a proposal to eliminate SEC regulation and transfer all oversight to the CFTC.
Nor would implementation of the legislation guarantee that every cryptocurrency increases in price. The law primarily seeks to address U.S. market structures and regulatory jurisdiction. Individual cryptocurrency prices would continue to be influenced by separate factors, including liquidity, interest rates, supply and demand, leverage, and investor sentiment.
The important distinction is that the market was reacting not to the legislation taking effect, but to political developments that renewed attention to the possibility of its passage.
What Should Investors Watch After the USD 70,000 Breakout?
Crossing USD 70,000 once does not establish a confirmed upward trend. The latest movement was influenced not only by regulatory news but also by short-term pricing factors, including interest rates and short-position liquidations.
The first development to monitor is the CLARITY Act's progress through the Senate. White House support has been confirmed, but the legislation has not completed every stage of the congressional process. Its provisions could also change during congressional negotiations.
Long-term U.S. Treasury yields are another important factor. This time, declining yields following the Treasury's announcement of expanded buybacks supported risk assets. However, if long-term yields rise again, investors cannot assume that the same favorable environment will persist.
It is also important to distinguish whether genuine spot-market buying demand remains after short-position liquidations subside. Short liquidations can produce extremely rapid price increases, but once forced buying has been exhausted, those transactions do not necessarily represent sustainable new demand.
Rather than relying on a simple 'Trump speaks → Bitcoin rises' explanation, it is more useful to assess whether U.S. congressional progress on cryptocurrency regulation, bond yields, and spot-market demand continue to support the market simultaneously.
What Bitcoin's Recovery Above USD 70,000 Means
Bitcoin's recovery above USD 70,000 on August 2026 represents a clear market shift because the cryptocurrency has moved beyond a price level it had been unable to surpass for more than two months. President Trump's direct call for Congress to advance the CLARITY Act has also renewed expectations surrounding the U.S. digital asset regulatory environment.
However, the legislation has not yet passed. The rally also reflected several simultaneous developments, including expanded U.S. Treasury buybacks of long-term government bonds, changes in interest rates, and short-position liquidations.
Therefore, the most appropriate conclusion supported by currently verified information is that 'Trump's call for the cryptocurrency regulation legislation to advance was one of the factors supporting the rally.' It would be premature to interpret the development as confirmation that the legislation has passed, that regulatory easing is guaranteed, or that further price increases are certain.
Bitcoin prices can change significantly even within short periods. Following the latest breakout above USD 70,000, investors should monitor not only the price itself but also the CLARITY Act's actual progress through Congress, developments in U.S. long-term interest rates, and changes in spot-market buying demand.
※ This article is provided for informational purposes to help readers understand market developments and does not constitute an investment recommendation regarding any specific security or asset. All final investment decisions and associated responsibilities rest with the individual investor.