BitUnix analyst: Ministry of Finance intervenes in long-term bonds, Federal Reserve continues to prevent inflation, BTC rises strongly by nearly 20% According to BlockBeats, on August 21st, the US Treasury Department continued to stabilize the bond market by expanding long-term US bond repurchases. Treasury Secretary Benson also stated that the size of a single repurchase may exceed $4 billion, indicating that the government's sensitivity to the cost of long-term financing is increasing. However, Federal Reserve officials' assessment of inflation has not simultaneously shifted towards easing. Daly believes that there is currently no evidence of the need to raise interest rates early, but Musalem believes that raising interest rates early may help avoid more aggressive policy tightening in the future. The policy tension between the Ministry of Finance's desire to lower long-term yields and the Federal Reserve's need to prevent overly loose financial conditions is increasing. More noteworthy is that the interest rate decline brought about by US bond repurchases has not been sustained, and long-term yields quickly rose again, reflecting that the market is still trading $40 trillion in debt, about 6% of the fiscal deficit, huge government financing needs, and term premiums, rather than a single repurchase policy. Therefore, the operations of the Treasury Department can improve short-term liquidity and market sentiment, but it is difficult to change the structural pressure of long-term debt supply in the United States alone. This policy environment is also being reflected in the US dollar and asset prices. Citigroup lowered its forecast for the US dollar, believing that the expectation of the Federal Reserve turning dovish and the repurchase of US bonds will put pressure on the US dollar; Against the backdrop of a weak US dollar, gold continues to strengthen, while BTC has risen by about 19.9% since Monday, reaching around $75400, with 24-hour short positions reaching $1.08 billion, forming a clear bearish squeeze. During the same period, cryptocurrency ETFs recorded a net inflow of approximately $859 million, with BTC ETF inflow of $606 million and ETH ETF inflow of $220 million, indicating that this round of gains is no longer just a leveraged short position replenishment, but also a re entry of spot funds. Therefore, what is truly worth observing for BTC at present is not simply the expectation of interest rate hikes or cuts, but whether the combination of the US dollar, US bond yields, and liquidity can be maintained. If the long-term yield is suppressed by the Ministry of Finance's operations, the US dollar continues to weaken, and ETF funds continue to flow in, BTC still has the conditions to continue its strong performance; On the contrary, if the $40 trillion debt and inflationary pressures push up the maturity premium again, forcing the Federal Reserve to adopt tighter policies, the current high beta market in the cryptocurrency market will also face repricing pressure.