Crypto prices surged on Wednesday as improving liquidity conditions, short liquidations, regulatory optimism and institutional ETF inflows combined to push digital assets sharply higher.

Bitcoin (BTC) climbed above $68,000, while Ethereum (ETH) reclaimed the $2,000 level during US trading. Solana (SOL), XRP, BNB, Hyperliquid (HYPE) and Dogecoin (DOGE) also advanced as the broader crypto market recovered.

The rally came as Treasury buybacks eased concerns about liquidity in US debt markets, while a wave of leveraged short positions was liquidated across crypto derivatives markets.

Treasury Buybacks Improve Risk Appetite

One of the major catalysts behind today’s crypto rally was a change in US Treasury debt-buyback plans.

Treasury Secretary…