By Fugui

Prologue

On August 19, Bessent at the Treasury doubled the cap on long-term bond repurchases, pushing the 30-year U.S. Treasury yield down from 5.31% to 5.18%, which amounted to a disguised liquidity injection. Bitcoin posted three consecutive bullish candles, rising from $64,000 to $78,000 in just a few days—a 20% jump. Groups started chanting again that the bull market was back.

The money is indeed back. In the third week of August, U.S. spot Bitcoin and Ethereum ETFs saw a weekly net inflow of $2.61 billion, marking the strongest week since October last year. Bitcoin ETF total assets returned to $96 billion, while Ethereum ETF reached $14.3 billion.

But not…