Market Action and Schiff's Critique
Bitcoin traded around $71,447, registering a gain of about 9% over a 24-hour period. During the session, the price reached a high of approximately $72,397, marking its highest level since May 31. Longtime Bitcoin critic Peter Schiff dismissed the movement as a false breakout driven entirely by a one-off U.S. Treasury announcement.
Schiff urged investors to sell Bitcoin and buy gold instead, arguing that the rally stemmed from the U.S. Treasury's decision to double its long-term bond buybacks, raising the limit for each operation from $2 billion to at least $4 billion. This shift caused the 30-year bond yield to drop from over 5.34% to about 5.196%. Schiff contended that treasury yields have already begun climbing again and that the buyback scale is insufficient to alter the overarching trend without official quantitative easing from the Federal Reserve.
Bullish Indicators and Institutional Flows
In contrast, bullish analysts interpret the recent market data as the potential beginning of a fresh cycle. Ki Young Ju of CryptoQuant noted that Bitcoin demand has turned positive across both spot and perpetual futures for the first time since the October 2025 all-time high, stating that a continuation of this pattern for another month would signal a new bull cycle.
Institutional activity supports the optimistic outlook, with U.S.-listed spot Bitcoin ETFs pulling in more than $1 billion between Monday and Wednesday, reversing $389.7 million in outflows from the prior week. Additionally, Bitcoin whales added roughly $2.75 billion worth of the token over a 60-day period. Adam Back expressed an optimistic long-term view, suggesting Bitcoin could reach $1 million if its total value matches gold's market capitalization.
Regulatory Sentiment and Derivatives Data
Investor confidence also received support following a meeting between President Donald Trump and executives from Coinbase, Payward, and Blockchain.com, which raised expectations regarding the stalled Clarity Act that the Senate is anticipated to discuss in mid-September.
Meanwhile, derivatives data from Deribit indicated that traders held $1.5 billion worth of Bitcoin call options at the $70,000 price level, alongside $1.4 billion in put options at the $60,000 level.
