Bitcoin rose on 21 August to approximately $795 million, almost three months high, and then partially increased in repulsion, falling around about $77,000 on 24 August. The increase was driven mainly by the expansion of long-term national debt buy-backs by the United States Treasury Department, the return of spot bitcoin ETF funds and the concentration of empty silos.

United States Treasury's extended repurchase

The United States Department of the Treasury announced an increase in liquidity support buy-backs from 10 to 30-year-old sovereign debt from $2 billion to at least $4 billion per buy-back as of September 9. Officially, it is to improve market liquidity for long-term national debt.

After the news was released, the market was rapidly adjusted. Long-term United States debt yields went down, the dollar weakened and funds shifted to scarce assets such as gold and bitcoin. According to the article, this change is tantamount to a short-term easing of financial conditions, which supports risky assets.

ETF One-week inflow of $1.9 billion

Following expected improvements in macro-liquidity, institutional funding has further pushed up the bitcoin trend. Farside data show that United States real bitcoin ETF net inflows of $517.2 million on 19 August and $606.3 million on 20 August.

On a weekly basis, Bitcoin ETF net inflows were about $1.9 billion a week; if it combined the relevant products, mainly bitcoin and the Tailet, it was about $2.6 billion a week. This is in clear contrast to the weak financial flows in early August and shows a clear recovery of institutional needs after the return to bitcoin of $69,000.

I'll take care of it.

In addition to off-the-shelf purchases, the empty replenishment of the derivatives market also magnified the increase. It was reported that over $4 billion of the increase in the round had been cleared of the empty space space, forcing traders who had previously been betting down to make up for the price.

This passivity tends to push up volatility in a short period of time, making price breakthroughs faster than the single-driven pace of off-the-shelf finance. Bitcoin therefore recorded more than 20 percent of the increase in a week, the strongest single week since March 2024.

$75,000 in regional attention

The article mentioned that the market then focused on whether bitcoin could turn this round of liquidity-driven breakthroughs into more sustainable demand. After the recent breakthrough, the $700,000 medium section was considered to be an important support area.

If prices continue to stand in this area, $80,000 remains short-line and testable; if they fail, they may trigger a partial closure of the profits. Next, the market will also focus on the statement made by Federal Reserve Chairman Kevin Warsh at Jackson Hall and the impact of subsequent US inflation data on risk preferences.