Bitcoin rose in the strongest round of recent months on August 20, with $71,000 in the disc and 11.4 per cent in 24 hours. This rotation is not driven by a single factor, with the return of spot ETF funds, the adjustment of long-term United States dollar debt buy-back arrangements, and the large-scale silos in the derivatives market, which overlap almost at the same time.

According to the article data, bitcoin rose at one point to approximately US$ 71,920, almost two months high, with a 24-hour turnover of about US$ 60,460 million and a market value of about US$ 1.44 trillion. Prices went fast from about $64,400 to several levels of $66,000, $68,000 and $70,000.

Repurchase arrangements adjusted by the United States Treasury

Prior to the current round, the most significant macro-change came from the United States Treasury Department. On August 19, the United States Department of the Treasury announced an increase in the single liquidity support purchase-back cap on nominal national debt for 10 to 20 years and 20 to 30 years, from $2 billion to at least $4 billion.

This adjustment will be implemented from 9 September and will continue until the next quarterly refinancing statement on 4 November. The Treasury defines this operation as a measure to improve the liquidity of old vouchers, not as a Fed debt purchase or a direct currency stimulus.

However, the market continues to view it as a sign of lydos of risky assets. Following the release of the news, the long-term return on United States debt fell, the United States dollar weakened and the risk assets as a whole strengthened. In the case of the bitcoin, a decline in the rate of return would reduce the attractiveness of long-term national debt to finance, and part of it would be more inclined to switch to equities, gold and encrypted assets.

Cash, ETF.

In addition to macro-level factors, off-the-shelf purchases provide more direct support to the market. SoSoValue data show that United States real bitcoin ETF recorded a net inflow of $517 million on 19 August, the largest single-day inflow since May, and significantly above the average in July.

This means that the breakthrough process is not only emotional, but also real cash. The return of funds to circulation often enhances the market ' s judgement of short- and medium-term demand, especially when prices are repositioned to key integers, thus making it easier to scale up recovery transactions.

  • Bitcoin, 24 hours up 11.4%.
  • United States spot bitcoin ETF single-day net inflow $517 million
  • 24 hours, approximately $60.460 billion

It's flattening up.

Derivatives markets further accelerated the increase. Citing market data, it was reported that after a $69,000 increase in bitcoin, over $1 billion of empty silos were forced to level in an hour.

When the exchange flattens its positions, it is often necessary to buy them in the market, which will continue to increase as it rises. As a result, bitcoin did not slowly rise, but did so quickly over $6,000 in hours.

However, this kind of increase from strong flat also means that part of the purchase is not additional long-term funding, but rather a passive replenishment of the leverage position. Price volatility is likely to increase again in the absence of a subsequent new off-the-shelf demand relay.

$700,000 for short-term observation.

In terms of price structure, bitcoin has broken through the previous US$ 60,000 to US$ 66,000 consolidation, and the volume of trade has been amplified at the same time, indicating that the purchasing drive is more intense than in the previous period. And the market's first concern is whether $70,000 is going to be able to shift resistance from the previous period to a new one.

It was mentioned that the vicinity of $72 million remained an important area of resistance above and close to some short-term holders ' cost areas. If prices continue to stabilize and break through the region, the market will further observe the performance of $75,000 and above.

If you fall again below $70,000, $68,000 will be the first lookback and then down to the $65,000 to $66,000 area where the breakthrough occurred.