Bitcoin rose to US$ 72,408 on Thursday, then fell around US$ 71,423, with an increase of about 3 per cent in the day. This was the first time that the asset had returned to the price band since its sharp fall in early June, and the rebound of the past two days had clearly reversed market sentiment.

It's a big deal.

The increase triggered large-scale liquidations. According to Coinglass, some 174,416 traders have been liquidated in the past 24 hours in the encryption market, totalling approximately $2.85 billion. If the previous day had been taken into account, the cumulative size of the two-day empty silo had exceeded $3 billion.

When prices continue to rise and the bond is not sufficient to cover the losses, the exchange enforces the levelling of empty positions. A buy-back would further push up the price and trigger more empty exits, creating a chain reaction. After the Bitcoin repositioned on Wednesday for $70,000, the process has accelerated considerably.

This week's cumulative rebound is approaching 15%.

According to the reported data, the cumulative increase in bitcoin since Monday has been close to 15 per cent. Prior to a rapid fall on 2 June, bitcoin had fallen from approximately US$ 71,765 to US$ 67,895, and then weakened, reaching a low of US$ 57,832 by the end of June.

This means that the current price has returned to the level before and after the fall in early June. Market sentiment was also repaired. It was mentioned that, in Myriad, a forecast market operated by the Decrypt parent company, traders had previously apparently been betting bitcoin on a possible fall to $55,000, but by Wednesday afternoon the probability of the relevant bets was close to even.

ETF Finance and Macro Catalysing Resonance

The market attributed part of this week's increase to new moves by the United States Treasury Department. The United States Treasury Department indicated on Wednesday that it would raise the single cap on the buy-back exercise from 10 to 30 years of national debt from $2 billion to $4 billion, and that the new arrangement would be launched on 9 September. It was reported that the initiative had depressed the rate of return on United States debt and weakened the United States dollar, leading to a recovery of risk.

  • Present bitcoin ETF Net inflows on Wednesday $517 million
  • This is the largest single-day net inflow since May.
  • Strategy synchronizes with Coinbase rising this week

Of these, Strategy cumulatively increased by nearly 12 per cent this week, and Coinbase rose by about 9 per cent. Glassnode describes this round as the strongest up-to-up shock since October 2023.

Technical position still pending.

Despite the rapid price rebound, it was reported that Bitcoin had not yet been firmly on the critical average. The “cross-mortality” pattern of market concern has not yet been reversed, i.e. the 50-day moving mean remains below the 200-day moving average.

This means that, while the short-line dynamic is significantly stronger, the completion of the longer-term technical structures will depend on the continued stability of the follow-up. The next expanded United States Treasury Treasury debt buy-back exercise will take place on 9 September, and the market will continue to observe its impact on liquidity and risk preferences.