Why is the Crypto Market up 7.53% Today, August 20, 2026? Broad Participation and Short Covering Reset Leverage

Crypto saw a broad risk-on rebound as total market cap rose 7.53% to $2.456T, driven by a ~$1.33B BTC short-liquidation wave that forced covering and accelerated upside. Macro support from reported U.S. Treasury buyback plans (lower yields, softer dollar) helped lift risk appetite. Leadership from ETH (+18%) and rising derivatives open interest (+17%) signal participation, but also a faster leverage rebuild that can raise reversal sensitivity.