BlockBeats News, August 20, as Bitcoin approached $70,000, cryptocurrency-related stocks saw their largest single-day gains since the summer on Wednesday, with Strategy (MSTR), Coinbase (COIN), Circle (CRCL), and BitMine (BMNR) all surging.

Among them, the Bitcoin reserve company Strategy saw its stock price rise by 11.95% to $103.58, with an intraday surge of over 13%; the cryptocurrency exchange platform Coinbase rose by 9.05% to $159.47; the stablecoin issuer Circle rose by 9.44% to $78.50; and the Ethereum reserve company BitMine rose by 9.68% to $20.05.

This surge was mainly driven by a short squeeze in Bitcoin. As Bitcoin surged towards $70,000, a large number of short positions were forced to liquidate, resulting in nearly $2 billion in liquidations in the past 24 hours in the cryptocurrency market. At the same time, the U.S. Treasury Department expanded the size of long-term Treasury repurchases, improving market liquidity expectations and leading to a broad rise in risk assets.

Stocks such as Strategy and Coinbase were also impacted by short covering. Both companies were previously among Wall Street's heavily shorted stocks, and as their stock prices rapidly rebounded, some short sellers were forced to buy to cover their positions, further amplifying the gains.

Strategy currently holds about 840,000 Bitcoins, and its stock price trend is highly correlated with the price of BTC; BitMine holds about 5.82 million ETH, making it one of the listed companies in the market with the closest exposure to Ethereum.

However, despite this apparent rebound, Strategy, Coinbase, and BitMine are still in a downtrend for the year. The market is still observing whether Bitcoin can break through and hold above the resistance near $70,000 to determine whether this rally is a trend reversal or a short-term short squeeze.