Analysts from K33 and Bitwise suggest that the bearish squeeze on Bitcoin, leverage reset, and macro catalysis brought about by US Treasury Secretary Vicente indicate a bull market reset. Bitcoin has risen 23% in the past week, with spot and perpetual contract trading volume increasing by 188%, CME trading volume increasing by 152%, and a net inflow of 31740 BTC from Bitcoin investment products. On August 19th, a $1.37 billion Bitcoin short was liquidated, and on August 21st, a $739 million short was liquidated. The nominal open interest of perpetual contracts has decreased to 284000 BTC, and the funding rate has returned to neutrality. Bitcoin's six-month 25 Delta option skews to negative values for the first time since September 2025. Bitcoin recovers 50 day, 100 day, 200 day, and 200 week moving averages within 4 days. Besant pushed to increase repurchase of long-term US treasury bond bonds. The 90 day correlation between Bitcoin and gold rose to 0.52, while the correlation with Nasdaq dropped to 0.38. Matt Hougan believes that neutral currency networks are more valuable.
