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IT August | Newsletter
Bitcoin jumps 25% in a week as debt buybacks, short liquidations and thin supply collide, SEPA QR codes and haptic feedback land in the app, Auto Send explained, and where to meet Invity this autumn.
Hello,
here comes the August newsletter with a look at the recent sharp rise in Bitcoin’s price.
📈 Market
Bitcoin spent most of the summer below 65,000 USD and until 17 August nothing suggested that was about to change. On that very day the price began to climb sharply, reaching 81,223 USD. Over seven days Bitcoin gained 25%, its largest upward move since March 2023. What caused the rally, and does it mean the bear market is behind us?
A number of analysts link the move to a combination of three events.
1. Government debt buybacks. The US Treasury announced it will double the size of its long-term government debt buybacks to at least 4 billion USD per month. This is a discreet attempt by the government to fix interest rates, which should make the national debt easier to service. That debt has meanwhile passed 40 trillion USD. The announcement left investors uncertain about US government debt, so some of them moved capital into assets with a stronger potential to hold value over the long term. Into gold and Bitcoin. Bitcoin ETFs took in 1.5 billion USD during that week alone.
2. Short position liquidations. The sharp price move triggered a cascade of short liquidations. Traders betting against Bitcoin had to close their positions by buying it back. More than 1.2 billion USD of positions were liquidated in just 60 minutes, and 2.8 billion USD in total.
3. Falling supply. The price also rose because few people are left who are willing to sell their Bitcoin at the end of a bear market. Strong demand meeting thin supply is what allowed such a large move on a seemingly minor trigger.
Is the bear market over?
The average Bitcoin bear market lasts 382 days and takes the price down by roughly 82%. The current one has lasted only 324 days so far, and the price found its low 54% below the October high. So, is the bear market over? It is possible, because Bitcoin’s volatility is visibly falling as institutional investors enter the market. Price swings are getting smaller. Last year’s bull market was less extreme than previous cycles, which may point to a shallower bear market as well. Bitcoin has started to attract a much wider pool of investors. Institutional investors are a large and steady source of demand regardless of price.
Bitcoin price chart for August
📱 What’s new in the app
- QR code for SEPA and bank transfers
- Number animations
- Haptic feedback
Download our app
Sending Bitcoin automatically
The Invity app offers a useful feature called Auto Send. It suits anyone who wants to hold their Bitcoin in their own wallet. Auto Send lets you send Bitcoin only once it reaches a value you set in advance in fiat currency, which is something other providers do not offer.
An example: you use the Auto Buy Plus strategy. Once the value of your Bitcoin reaches the 10,000 CZK you set, that amount of Bitcoin is sent to your wallet automatically.
Setting Auto Send to a higher amount also removes the risk of dust transactions and keeps your future transaction fees down.
🎓 Edu corner
Why Bitcoin is a good long-term store of value
The significant rise in the price of Bitcoin and gold during August confirmed the role of these assets as long-term stores of value, at least in the eyes of investors. The steps taken by the US Treasury told the market that the amount of new money in circulation is going to grow, and that quietly erodes the value of the money already in circulation.
This is the classic way the current financial system deals with the problem of debt. With more debt and more money printing. This is exactly where Bitcoin comes in, designed from first principles so that none of this is possible. There will never be more than 20,999,999.9769 Bitcoin. Gold is limited on our planet in much the same way.
Limited supply, the fact that it cannot be copied, and the work required to obtain it make Bitcoin a unique long-term store of value.
The best of our posts
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The Coldcard case: why randomness matters. See the post
More details are available on our blog.
Where you can meet us
At Invity we are getting ready for a very busy autumn. Where can you meet us?
- 11–12 September ChainCamp + Plan B, Ostrava (CZ)
- 16–17 September European Blockchain Convention, Barcelona
- 19 September Blocktrainer event, Cologne
- 25–26 September BTC Helsinki
- 2–4 October Watchout Bitcoin, Madrid
- 4–6 October BTC Poland, Poznan
- 27–29 October Merge, Madrid
- 5–6 November BTC Amsterdam
The value of crypto-assets can fluctuate. Investing in crypto-assets carries a risk of loss. Historical returns are not a guarantee of future returns.
