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Bitcoin: The Bull Run Continues!

Bitcoin: The Bull Run Continues!

CointribuneCointribune2025/08/24 12:05
By:Cointribune

Volatility is back on bitcoin. Between jolts and hesitation, the bullish trend remains alive.

Bitcoin: The Bull Run Continues! image 0 Bitcoin: The Bull Run Continues! image 1

In Brief

  • Bitcoin weakens but does not break, down 7% from its record of $124,457.
  • The U.S. government sends mixed signals regarding the strategic reserve.
  • Institutionals continue buying thousands of bitcoins every day.
  • The Fed could cut rates as early as September and lift the markets.

Ordinary Correction

Bitcoin oscillates around $115,000, down 7% from its all-time high of $124,457 reached on August 14. We are still up more than 90% year over year.

Record inflows into ETFs (BlackRock’s ETF holds $88 billion in BTC) and massive purchases by companies like Strategy continue to fuel optimism.

The Dutch company Amdax has just announced its intention to buy 1% of the total bitcoin supply, or 210,000 BTC!

Strategy is already buying 785 bitcoins per day. That’s 186 bitcoins for Twenty One Capital, 128 BTC for Bitcoin Standard Treasury Company, and 73 BTC for MetaPlanet:

Add the 1,500 BTC absorbed daily by ETFs, and we are well above the natural supply of 450 BTC mined each day. Hence the average annual appreciation of 60% over the last five years. That’s 77% if you calculate since 2011, when one bitcoin was worth $1.

The Bull Run is far from over. The 10% pullback in recent weeks is something classic. However, it must be recognized that the $200,000 high target is drifting away for 2025.
Several factors are involved. There was the sale of 80,000 BTC in mid-July following the liquidation of an inheritance. Then the contradictory signals from the U.S. Treasury Department.

Is the Bitcoin Reserve in Trouble?

U.S. Treasury Secretary Scott Bessent said on Fox News that the United States would not be strengthening its bitcoin reserve. And this just days after the head of bitcoin strategy, Bo Hines, resigned from his position. That was enough to alarm the market.

Faced with general misunderstanding, the Secretary quickly corrected course on X by writing that the Treasury remains “committed to exploring budget-neutral ways to acquire more bitcoins to increase reserves and fulfill the presidential promise to make the United States the global superpower of bitcoin.”

Bo Hines has since joined the stablecoin company Tether. And just like Strategy, Tether relentlessly accumulates bitcoins (100,000 BTC in reserve).

All eyes now turn to Senator Cynthia Lummis’s “Bitcoin Act.” The plan is to buy one million bitcoins by selling part of the gold stocks.

For skeptics, recall that the company of the U.S. president, Trump Media & Technology Group, recently bought $2 billion in bitcoins. There are unmistakable signs…

Note also that Brazil has just started discussions regarding the creation of a strategic bitcoin reserve. Representative Eros Biondini is suggesting allocating up to 5% of Brazil’s foreign exchange reserves, or $19 billion. Brazil would then hold as many bitcoins as the United States.

Brrrrr….

Bitcoin has been gaining altitude since statements from the Fed president in Jackson Hole. A rate cut seems to be shaping up for September. The key phrase in the speech was:

The evolution of the risk balance could justify an adjustment of our monetary policy.

Jerome Powell

That’s all the markets wanted to hear. Trading algorithms reacted instantly to this statement, causing stocks to surge and borrowing rates to drop.

Jerome Powell did however remind that tariff increases could impact inflation. The last-resort solution would then be to run the printing press (Quantitative Easing) to keep rates at rock bottom.

Could this be why Donald Trump is so eager to take control of the Fed? In any case, a rate cut will accelerate credit growth. This will result in a general rise in markets, including bitcoin.

See you on September 17 for Jerome Powell’s next press conference. Monetary easing would be a good omen for the end of the year. As well as a return of the Bitcoin Act to the forefront.

Michael Saylor bets on bitcoin going above $150,000 before Christmas. Don’t miss our latest article: Check if your bitcoins are threatened by quantum computing.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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