Bitcoin Surges Above $80,000 on Treasury Buybacks and ETF Inflows
Bitcoin climbed above $80,000 for the first time since May, gaining roughly 4% on Tuesday and more than 25% over the week. Spot Bitcoin ETFs recorded a sixth straight day of inflows with $337.56 million on August 24, contributing to over $2.5 billion in recent sessions and lifting total assets near $98.6 billion. Solana rose nearly 8% amid validator votes on proposals to slow issuance and raise burns, while the broader rally included strong weekly gains in XRP and Ether. Momentum indicators reached overbought territory near 78, with analysts flagging potential resistance between $78,500 and $82,000.
The move followed Treasury Secretary Scott Bessent’s expansion of bond buybacks, which markets interpreted as supporting the debasement trade in hard assets. Earlier short squeezes liquidated over $3 billion in positions, but sustained ETF demand indicates institutional participation beyond forced covering. Federal Reserve Chair Kevin Warsh’s Jackson Hole speech is next, alongside Clarity Act votes and September data.
Key tensions include stretched positioning that could reverse quickly if buybacks disappoint or yields reassert, versus the structural bid from fiscal concerns and ETF flows. Uncertainty surrounds whether the rally sustains without further policy signals or faces a consolidation pullback.
Sources: CoinDesk, ZeroHedge, Bitcoin Magazine, CoinTelegraph.
Druckenmiller Criticizes Treasury Bond Buybacks as Markets Bid Bonds, Gold and Crypto
Billionaire Stanley Druckenmiller, a former mentor to Treasury Secretary Scott Bessent, publicly opposed the expanded bond repurchase program in a Wall Street Journal op-ed. He argued that governments defending prices against fundamentals always lose, that elevated long-term yields reflect nominal growth and act as a necessary check on borrowing amid $40 trillion in federal debt, and that suppressing them removes fiscal discipline. Yields had risen earlier in the year, with the 10-year near 4.70% and 30-year above 5%.
Bessent’s actions, including using cash balances for buybacks and economic measures targeting Iran revenues, coincided with bids in bonds, bullion and Bitcoin while tech equities weakened. Markets priced temporary relief in yields alongside the hard-asset rally. Druckenmiller contended conditions remain accommodative as long as yields stay below growth rates.
The contradiction lies in short-term market support versus longer-term risks of distorted signals and larger deficits. Uncertainties include the scale of future buybacks before the November refunding announcement and whether yields ultimately reassert higher.
Sources: CoinDesk, ZeroHedge.
Sinopec Says China’s Oil Demand Very Likely Peaked Last Year
Sinopec Chairman Hou Qijun stated that China’s oil demand probably peaked in 2025, earlier than prior forecasts of 2027, citing clean energy, electrification and low-carbon goals. Road fuel demand fell sharply in the first half as consumers shifted to electric vehicles and avoided higher prices. Even with potential easing of US-Iran tensions, next year’s levels are not expected to match last year’s.
As the world’s largest oil importer and refiner, this assessment comes amid ongoing Middle East disruptions, Hormuz shipping costs and US economic pressure on Iran. Sinopec reported steady inventories and diversification of crude sources. Japan’s power prices also surged on gas supply issues and heat.
Analysis points to structural demand weakness offsetting some supply risks, though diesel and refined products face separate pressures. Tensions remain between peak-demand narratives and geopolitical supply threats; uncertainties include the pace of EV adoption and actual Chinese economic activity.
Sources: ZeroHedge, OilPrice.com.