Why is it going up? ($BTC )
The reason is not crypto.
1. The U.S. Treasury has doubled the bond repurchase program. Each operation increases from $2 billion to at least $4 billion.
2. The target is 10- to 30-year bonds. The government is repurchasing its own debt with its longest maturities.
3. The reasons are as follows: the 30-year rate reached its highest level in 19 years. When government debt yields are this high, no one wants to take risks.
4. The repurchase action pushes rates down, redirecting money back into risk assets. This is what opens the road to Bitcoin.
5. The market has been heavily shorted. Everyone expects it to fall, and everyone is shorting.
6. In just 4 short hours, a $1.4 billion short position gets liquidated. These people buy not because they love Bitcoin, but because they have to cover to stop the losses.
7. The price breaks above the 200-day moving average, at $69,031. For months it has stayed below this line. Technical buy orders are also triggered.
8. On the same day, the SEC released a regulatory proposal. It clearly outlines a framework for raising capital, paving the way for mature networks to exit the securities category.
9. The White House will hold a cryptocurrency meeting. Coinbase, Ripple, and a16z will participate. The market has already priced in this positive news.
10. ETF capital flows have returned. On August 17, led by BlackRock and Fidelity, net inflows totaled $297.5 million.
Honestly, this isn’t a trend reversal.
Most of the rise comes from forced buying. The liquidated shorts only buy once; it won’t repeat the next day.
The reason is not crypto.
1. The U.S. Treasury has doubled the bond repurchase program. Each operation increases from $2 billion to at least $4 billion.
2. The target is 10- to 30-year bonds. The government is repurchasing its own debt with its longest maturities.
3. The reasons are as follows: the 30-year rate reached its highest level in 19 years. When government debt yields are this high, no one wants to take risks.
4. The repurchase action pushes rates down, redirecting money back into risk assets. This is what opens the road to Bitcoin.
5. The market has been heavily shorted. Everyone expects it to fall, and everyone is shorting.
6. In just 4 short hours, a $1.4 billion short position gets liquidated. These people buy not because they love Bitcoin, but because they have to cover to stop the losses.
7. The price breaks above the 200-day moving average, at $69,031. For months it has stayed below this line. Technical buy orders are also triggered.
8. On the same day, the SEC released a regulatory proposal. It clearly outlines a framework for raising capital, paving the way for mature networks to exit the securities category.
9. The White House will hold a cryptocurrency meeting. Coinbase, Ripple, and a16z will participate. The market has already priced in this positive news.
10. ETF capital flows have returned. On August 17, led by BlackRock and Fidelity, net inflows totaled $297.5 million.
Honestly, this isn’t a trend reversal.
Most of the rise comes from forced buying. The liquidated shorts only buy once; it won’t repeat the next day.