Crypto Market Update August 20: Bitcoin Breaks 200-day EMA After Historic Short Squeeze, as HYPE and PEPE Soar

The crypto market is making massive gains today, August 20, with Bitcoin (BTC) price reaching $72,000 for the first time since June 1. Hyperliquid (HYPE) and Pepe Coin (PEPE) are leading altcoins after rising by more than 20%. These gains have caused the biggest short liquidation event in crypto history.

Why the Crypto Market is Up Today

Data from CoinMarketCap shows that the total crypto market cap has increased by 10.6% today to $2.43 trillion. All of the top ten largest cryptos are trading in the green, with HYPE making the biggest gain of more than 24%.

The crypto market started its uptrend on August 19 after the US Treasury Secretary Scott Bessent said that the US will buy back treasuries to support the bond market. Traders priced in the possibility of these repurchases boosting liquidity and increasing the demand for risk assets.

The resulting rally forced a lot of short sellers to close their positions, with the forced buying pushing crypto prices higher. Data from CoinGlass shows that $3.03 billion in short positions have been wiped out in 24 hours, with this being the biggest single-day short liquidation event in the crypto sector.

Bitcoin had the highest liquidations of $1.76 billion, followed by Ethereum with $1.16 billion in liquidations. Solana and HYPE had the third and fourth highest liquidations of $109 million and $58 million, respectively.

The crypto market gains also come after President Trump met with crypto executives at the WHite House on August 19, and revealed that the US government is planning to buy BTC.

Trump’s meeting also revived the momentum around the CLARITY Act bill, with CoinGape prediction markets showing that the odds of this crypto bill passing in 2026 increased from 19% to 24% at the time of writing.

The gains could continue because of the CFTC’s Innovation Advisory Committee meeting that will take place today. As CoinGape reported earlier, the meeting will discuss crypto regulations in the US, with the committee looking to come up with a framework that will support crypto Innovation.

Crypto Market Data Today

• Total Crypto Market Cap: $2.44 trillion (+10.93%)
• 24-Hour Trading Volumes: $155.04 billion
• Total Crypto Liquidations: $3.41 billion
• Bitcoin Price: $71,913 (+11.57%)
• Ethereum Price: $2.296 (+19.50%)
• XRP Price: $1.19 (+18.79%)
• BTC ETF Inflows: $517.19 million
• ETH ETF Inflows: $189.15 million
• XRP ETF Inflows: $2.35 million
• Altcoin Season Index: 37/100
• Fear and Greed Index: 62 (Greed)

Total Crypto Market Open Interest Hits $126B as Futures Volumes Explode

Data from CoinGlass shows that the total open interest across the crypto market has increased by 10% today to $126.7 billion. This marks the highest OI seen in the crypto market since June 1.

The total futures trading volumes have also doubled in 24 hours from $151 billion on August 19 to $325 billion, with the surge likely coming from rising liquidations and demand for new positions as crypto prices rise to multi-month highs.

Bitcoin’s futures volumes have increased by 280%, while Ethereum’s are up by $373%. Hyperliquid has seen the highest increase in volumes, which rose by $568% to $9.83 billion.

Bitcoin Price Moves Past 200-day EMA Resistance After 11% Rally

The price of Bitcoin had moved above the 200-day EMA resistance of $71,543 at press time, suggesting that the long-term Bitcoin outlook is changing from a bearish one to a bullish one. If BTC price closes above this EMA, the price could target the next psychological resistance at $75,000.

However, the RSI reading of 78 suggests that Bitcoin could be overbought after many buyers entered the market and pushed the price from $64,000 to $72,000 in less than 24 hours.

If buyers become exhausted, the rally could cool off, forcing BTC price to close below the 200-day EMA. Such a move could cause profit-taking, and the price could move to test support at the 50-day EMA of $64,870.

Still, the uptrend could be supported by inflows to Bitcoin ETFs. Data from SoSoValue shows that these ETFs had $517 million in inflows, with this being the biggest single-day inflow seen since May 4.

HYPE Price Soars as Trump Endorses Hyperliquid

The price of HYPE is up by 23% today to trade at $72 as buying pressure increased after President Trump revealed that the CFTC is working to bring Hyperliquid to the US.

Trump’s statement and the resulting buy-side pressure have now pushed the price of HYPE above the resistance of a bull flag pattern. This bull flag suggests that the price of HYPE could surge by 253% if the pattern plays out.

The RSI reading of 64 suggests that the momentum is favoring bulls and HYPE is still not overbought despite the recent gains. In the near term, the price of HYPE could target the upper Bollinger band of $78 as the crypto sentiment shifts.

PEPE Price Outlook After 21% Rally

The price of PEPE is up by 21% to trade at $0.00000313 at the time of writing. PEPE is now the biggest gainer among the top five biggest meme coins in the crypto market, with its market cap also rising to $1.29 billion.

Data from CoinGlass shows that PEPE’s open interest has also risen to $2500 million, while the futures volumes for the meme coin are up by 346% to $797 million.

If PEPE continues with the uptrend, the price could move to the next resistance at $0.0000040. However, the uptrend is dependent on whether the market sentiment remains bullish and retail buying pressure remains high.

Catch up on yesterday’s key developments and the coins that made the biggest moves in our Crypto Market Update August 19.