BlockBeats News, August 22. Recently, Bitcoin has been on a continuous rise, driven by multiple factors such as institutional funds flowing back in, improved macro environment, warming U.S. regulatory expectations, and large-scale short liquidations.

Regarding fund inflows, the U.S. Bitcoin spot ETF has recently re-attracted institutional funds. Data shows that on August 19 and 20, the U.S. spot BTC ETF saw net inflows of approximately $517 million and $606 million, respectively. Julio Moreno, research director at CoinShares, stated that the ETF bought around 7,500 BTC in a single day, the highest level since April.

The market believes that the U.S. Treasury's expansion of the long-term treasury repurchase plan weakened the dollar's performance, driving up "currency debasement trades" and further channeling funds into Bitcoin and gold. Meanwhile, the Trump administration's push for cryptocurrency market structure legislation has also reduced investors' concerns about regulatory uncertainty.

In addition, the U.S. Congress is advancing crypto regulatory framework construction such as the "CLARITY Act," aiming to clarify the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in digital asset regulation. Analysts believe that Bitcoin currently has a high level of regulatory certainty, and the direct impact of relevant bills on BTC is limited but helps reduce the regulatory risk premium for the entire crypto market.

The market rally has also triggered large-scale short liquidations. Data shows that in the past two to three days, the crypto market has seen short liquidations of over $4 billion, with around $2.7 billion in a single day, followed by another $1.2 billion. Analysts say that this round of short squeeze has become one of the largest short-covering events in the recent crypto market.

Market participants believe that if institutional funds keep flowing in and the regulatory environment continues to improve, Bitcoin's mid-term uptrend may still continue.