Bitcoin reaches $81,000 as Treasury expands Iran sanctions

Bitcoin (BTC) surpassed the $81,000 price level on Aug. 25, marking its highest point since mid-May. The move follows a broader crypto rally that intensified after the U.S. Treasury announced on Aug. 19 it would at least double its long-term government bond buybacks, a decision that sparked liquidity expectations across markets.

On-chain data from the analytics platform CoinGlass indicates that $240 million in Bitcoin short positions were liquidated within the 24 hours leading up to the report. By comparison, long liquidations totaled only $88.83 million during the same period. The disparity suggests traders are facing pressure to close bearish bets, fueling a short squeeze that has driven prices higher.

The rally coincides with the U.S. Treasury Department's launch of Operation Economic Outcast against Iran on Aug. 24. Under this initiative, the Office of Foreign Assets Control (OFAC) gains the authority to sanction individuals worldwide operating in sectors of the Iranian economy, including digital assets, gold, aviation, and shipping. Treasury Secretary Scott Bessent described the move as an economic onslaught against Iran's global financial connections, drawing a parallel to the D-Day campaign in World War II.

Ben Caselin, CMO at the VALR crypto exchange, told TheStreet Roundtable that the breakout above $80,000 reflects more than a temporary liquidity event. He characterized it as a response to mounting monetary stress and a structural shift in global finance. Caselin noted that the U.S. national debt surpassing $40 trillion prompted the Treasury's bond buyback expansion, which compressed long-term yields and heightened concerns over currency debasement. He also pointed out that gold prices exceeded $4,500 per ounce during this period.

Caselin argued that the Bitcoin surge cannot be attributed solely to debasement concerns. He cited progress on the CLARITY Act as providing regulatory clarity that is accelerating institutional and retail participation. According to Caselin, corporate treasuries and institutional builders are scaling their involvement, indicating that current momentum points to a sustained structural bull market.

At the time of reporting, Decibel data showed Bitcoin trading at $78,364, representing a gain of more than 20% over the previous week. The original report by TheStreet was published on Aug. 25, 2026.