The logic behind Bitcoin’s sudden rally this time isn’t that complicated.

First, market expectations for a September Fed rate hike have begun to cool.
Fed Governor Waller’s latest remarks were dovish. If inflation data continues to cool, he is inclined to keep rates unchanged.
The continued tightening that the market had originally feared is beginning to ease, while the dollar and Treasury yields have fallen, naturally giving risk assets some breathing room.
Second, the previous decline accumulated a sizable number of short positions.
So this rally was not driven entirely by new capital. Once the price quickly broke through key levels, short stop-losses and liquidations turned into buying pressure, further pushing the market higher.
A large number of short positions have already been liquidated during this rally.
Third, the funding environment itself is not poor.
In August, U.S. spot BTC ETFs saw relatively large capital inflows. At the same time, news that the U.S. Treasury was expanding buybacks of long-term debt also eased market concerns about Treasury yields to some extent.#Gate用户突破6000万