Daily Crypto Briefing

Bitcoin gave back ground toward $78,000 as a 23% week ran into profit-taking, but spot ETFs logged an eighth straight day of inflows. July PCE landed in line, Q2 GDP held at 1.5%, and traders spent the day raising the odds that the Fed hikes in September.

Bitcoin cleared $80,000 for the first time since May before being rejected near $81,000. ETF inflows ran a seventh straight day, futures open interest fell to a five-month low, and Treasury's bond buyback drew a sharp rebuke from Druckenmiller.

Bitcoin crossed $80,000 late Monday for the first time since May 15, but the more telling data point was futures open interest falling to a two-month low. This leg was bought with spot, not leverage — and ETF inflows extended to a sixth straight day.

Bitcoin's run to $79,500 ended in a six-minute flush that erased $108 billion in market value and liquidated $1.71 billion, mostly longs. Altcoins took the worst of it. Zcash cleared $800 on a Grayscale ETF filing, and The Sandbox halted bridging after a mint exploit.

Bitcoin closed its best week since March 2023 above $77,000 after the Treasury doubled its long-end bond buybacks, pushing yields down and the dollar lower. Another $1 billion in shorts was liquidated, ETF inflows accelerated for a second day, and Japan cleared a new exchange.

Bitcoin cleared $72,000 for the first time since May as record short liquidations, an expanded Treasury buyback program and the SEC's new crypto offering proposal collided. Spot ETF inflows returned at scale. Whether the breakout holds above $70,000 is the open question.

Bitcoin ended the weekend flat near the 63K mark after a week that cost it about 3%. US spot ETFs swung back to outflows, the Coinbase premium hit a record 90 negative days, and the CME basis trade is unwinding. What moved on August 16, and what to watch this week.