A wave of short liquidations propelled bitcoin from $63,500 to $80,000 last week, adding roughly $500 billion in market capitalization to the crypto market. CoinShares recorded $2.94 billion in global crypto investment-product inflows in the week ending August 20, followed by another $1.65 billion in the first three trading days of the next week. Bitcoin futures open interest fell 9%, indicating the move was supported by a less leveraged base than the price surge alone suggested. The macro environment now represents the primary risk factor: Brent crude topped $90, Treasury yields climbed, and Fed rate-hike expectations firmed to 64% for September, shifting the initially favorable conditions into a significantly more hostile backdrop for risk assets.
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