The rally, which saw Bitcoin gain approximately 22.7% over seven days, coincided with a sharp pivot in U.S. monetary policy. Treasury Secretary Scott Bessent announced that the department would double the maximum size of its liquidity-support bond buybacks to $4 billion per operation starting in September. This expansion, aimed at longer-dated securities, weakened the dollar and ignited interest in alternative stores of value.
Institutional investors responded immediately, pouring $1.92 billion in net inflows into spot Bitcoin ETFs for the week ending Aug. 21—the highest volume seen since October 2025. This return of capital has pushed the Crypto Fear & Greed Index to 78, signaling a rapid shift toward extreme market optimism.
Cole argues that Bitcoin is now operating under conditions it has never faced before, specifically a "hunt for scarcity" in an age of AI-driven abundance. He contends that as software and digital capabilities become cheaper to reproduce, investors will place a higher premium on assets with fixed supplies. By tracking Bitcoin’s performance against gold—where the ratio has climbed to 16.73 ounces per coin—Cole believes the market is already signaling a structural shift. Strive, which holds 19,864 BTC, maintained its accumulation strategy even during the recent downturn, with Cole asserting that the current breakout against both the dollar and gold confirms his bullish thesis for the next 12 to 18 months.
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