Bitcoin was clearly strong on Wednesday, and at one point it rose to about $68,776, or more than 6 per cent lower than the day. After a series of shocks around $65,000, the BTC is again approaching the near-term upwards, and the market sentiment is warming.

This round was not triggered by a single message. The fall in the United States Treasury debt rate, the weakening of the United States dollar and the re-inflow of spot bitcoin ETF funds have collectively improved the trading environment for venture assets. At the same time, the market is waiting for the Federal Reserve minutes of its July meeting to determine whether there has been a change in the subsequent interest rate path.

The US dollar is falling.

On Wednesday, the United States long-term national debt return fell and the dollar index went down. Reports indicate that the United States dollar index fell by about 0.3 per cent to 99.36 that day. In the case of risk assets such as bitcoin, declining rates of return tend to reduce the relative attractiveness of sequestered assets, and the weakening of the United States dollar tends to favour alternative asset performance.

The Fed will publish the minutes of its meeting from 28 to 29 July in the afternoon of Wednesday, Eastern United States time. The previous meeting had maintained interest rates at between 3.50 per cent and 3.75 per cent, but some officials had preferred a more restrictive policy stance. The current focus of the market is on the degree of disagreement within the Federal Reserve over inflation risks and whether there are additional indications that further interest-rate increases are weakening.

ETF net inflows in two days were close to $487 million

In addition to macro-level factors, the return of institutional funds is also an important support for the current round. The United States current bitcoin ETF recorded a net inflow of approximately $297.5 million on 17 August, and a further net inflow of about $189.3 million on 18 August, totalling nearly $487 million in two days.

  • Net inflows at 17 August were about $297.5 million
  • Net inflows on 18 August were about $189.3 million
  • Accumulated net inflows of nearly $487 million in two days

Following the instability of the Bitcoin over $65,000 for most of August, this round of inflows strengthened the spot market. The direct allocation demand generated by ETF requisitions usually magnifies off-the-shelf support during price breakthroughs and is therefore seen by the market as a more critical signal.

White House meeting and empty headback.

Policy developments in Washington have also provided additional support to the market. According to the report, on Wednesday, the Trump Government will convene in the White House seniors of the encryption industry, regulators and representatives of traditional financial institutions to discuss market structures, monetization and digital asset regulation.

In addition, the Senate ' s advance on the CLARITY Act is expected to resume in September, following the suspension of the relevant legislation in August. Positive expectations at the policy level, combined with the return of institutional funds, have further improved market risk preferences.

At the transaction level, the vicinity of $68,000 was previously seen by some traders as potentially empty areas. Once prices break critical resistance, part of the leverage may be forced to flatten, thereby magnifying the increase.

Next, the direct focus of the market remains on the minutes of the Federal Reserve Conference. The current increase may continue to be supported if the summary sends a more moderate policy signal; and if the language is harsh, Bitcoin ' s breakthrough may also face a new test.