Bitcoin Surges 24% Amid Diverging Market Trends
The price of Bitcoin surged approximately 24% from August 19 to 21, briefly reaching $79,400. The rally was triggered by the U.S. Treasury Department's expanded long-term bond buyback policy, which drove the dollar lower and long-term yields down, alongside renewed hopes for crypto regulatory clarity.
U.S. spot Bitcoin ETFs recorded net inflows of approximately $1.918 billion over five trading sessions, and key on-chain cost bases were reclaimed. However, CryptoQuant CEO Ki Young Ju stated that 'the bear market is nearly over,' but the Spot Taker CVD indicator remains in neutral territory, suggesting that aggressive spot buying has yet to materialize.
The rally was also driven by short liquidations, with approximately $3 billion in short positions being liquidated within 24 hours. Meanwhile, U.S. equities fell under pressure from high real interest rates and rising oil prices, creating an unusual divergence with Bitcoin.