In this round of violent surge, many friends are still completely confused. Shisan (13) Ma Hou Pao is here to give you an after-the-fact analysis: three forces were triggered at the same time.
First force: renewed “dollar depreciation” trading.
Last week, U.S. Treasury Secretary Besant announced that they would increase the scale of Treasury repo operations to push down long-term bond yields.
This policy directly triggered another wave of U.S. dollar selling, reigniting depreciation-trading in both Bitcoin and gold.
Bitcoin’s original design concept was to help people avoid the inflation problems caused by fiat currency depreciation and by central banks expanding money supply.
When the U.S. government itself began large-scale money printing to repurchase Treasuries, Bitcoin’s anti-depreciation properties were reactivated.
Citi raised its three-month gold price target to $4,800 per ounce. Gold and Bitcoin jumped in sync, indicating that capital is flowing into these two major anti-depreciation assets at the same time.
Second force: spot ETF inflows have been疯狂 (frenzied) for multiple consecutive days.
On August 24, U.S. Bitcoin spot ETFs recorded total net inflows of $337.6 million, marking the 6th consecutive trading day of net inflows.
BlackRock’s IBIT led with a single-day net inflow of $208.9 million. Fidelity’s FBTC followed with a net inflow of $104.6 million. Ethereum spot ETFs simultaneously recorded net inflows of $115.6 million.
Last week, Bitcoin spot ETFs saw net inflows of as much as $1.92 billion, the largest single-week inflow since Bitcoin hit its cycle high in October last year—showing that institutional capital is pouring back into the crypto market at an unprecedented pace.
Third force: a targeted bloodbath of shorts.
Over the past week, roughly $7.2 billion in leveraged short positions in the crypto market were forced to liquidate. In just three days, Bitcoin surged more than 20%, the largest rebound since 2023.
But Shisan must remind everyone of one thing: this rally is mainly a short-squeeze, not a surge in new buying orders entering the market in large quantities.
Forced covering by shorts pushed prices higher, but rallies driven by “passive buying” often lack the same staying power as rallies driven by “active buying.”
Keep this in mind.
First force: renewed “dollar depreciation” trading.
Last week, U.S. Treasury Secretary Besant announced that they would increase the scale of Treasury repo operations to push down long-term bond yields.
This policy directly triggered another wave of U.S. dollar selling, reigniting depreciation-trading in both Bitcoin and gold.
Bitcoin’s original design concept was to help people avoid the inflation problems caused by fiat currency depreciation and by central banks expanding money supply.
When the U.S. government itself began large-scale money printing to repurchase Treasuries, Bitcoin’s anti-depreciation properties were reactivated.
Citi raised its three-month gold price target to $4,800 per ounce. Gold and Bitcoin jumped in sync, indicating that capital is flowing into these two major anti-depreciation assets at the same time.
Second force: spot ETF inflows have been疯狂 (frenzied) for multiple consecutive days.
On August 24, U.S. Bitcoin spot ETFs recorded total net inflows of $337.6 million, marking the 6th consecutive trading day of net inflows.
BlackRock’s IBIT led with a single-day net inflow of $208.9 million. Fidelity’s FBTC followed with a net inflow of $104.6 million. Ethereum spot ETFs simultaneously recorded net inflows of $115.6 million.
Last week, Bitcoin spot ETFs saw net inflows of as much as $1.92 billion, the largest single-week inflow since Bitcoin hit its cycle high in October last year—showing that institutional capital is pouring back into the crypto market at an unprecedented pace.
Third force: a targeted bloodbath of shorts.
Over the past week, roughly $7.2 billion in leveraged short positions in the crypto market were forced to liquidate. In just three days, Bitcoin surged more than 20%, the largest rebound since 2023.
But Shisan must remind everyone of one thing: this rally is mainly a short-squeeze, not a surge in new buying orders entering the market in large quantities.
Forced covering by shorts pushed prices higher, but rallies driven by “passive buying” often lack the same staying power as rallies driven by “active buying.”
Keep this in mind.