Cryptocurrency rally continues, with Bitcoin approaching $78,500 and Ethereum exceeding $2,500

The market focus goes beyond Bitcoin and Ethereum, but the distribution of gains reveals more information.

Bitcoin and Ethereum set the tone for the market, but the distribution of earnings is more reference than mere price figures. value. According to CoinMarketCap data, the following table shows the assets with the most significant recent buying acceleration and the varieties with the largest weekly repricing.

Asset: Bitcoin, price: US$78,490, 1 hour increase: +1.3%, 24 hour increase: +78%, 7 day increase: +24%

Asset: Ethereum, price: US$2,510, 1 hour increase: +3%, 24 hour increase: +8.5%, 7 day increase: +34%

Asset: BNB, price: US$683, 1 hour increase: +1.2%, 24-hour increase: +4.6%, 7-day increase: +13%

Asset: XRP, price: $1.40, 1-hour increase: +2.4%, 24-hour increase: +11.8%, 7-day increase: +41%

Asset: Solana, price: $93.5, 1-hour increase: +2%, 24-hour increase: +7%, 7-day increase: +24.7%

Asset: Hyperliquid, price: US$76.8, 1 hour increase: +1.5%, 24 hour increase: +2.7%, 7 day increase: +37.5%

Asset: Dogecoin, price: 0.0915, 1 hour increase: +5.2%, 24 hour increase: +14%, 7 day increase: +31.3%

Asset: Zcash, price: $723, 1 hour increase: +2%, 24 hour increase: +26.7%, 7 day increase: +47.5%

Asset: Chainlink, price: $12, 1 hour increase: +3%, 24 hour increase: +14.9%, 7 day increase: +36%

Asset: Cardano, Price: US$0.225, 1-hour increase: +2.6%, 24-hour increase: +14%, 7-day increase: +26.5%

The varieties leading in the 1-hour increase are not the same as the ones leading in the 24-hour increase. Zcash's biggest gains occurred during earlier trading hours, while Dogecoin, Chainlink and Cardano still rose faster than Bitcoin in the latest data. This divergence suggests that new risk appetite is emerging in the market, rather than the entire market rising and falling.

Participation is wider than Bitcoin alone, but it is still selective. BNB and Hyperliquid lag behind the fastest-gainers, while Tron and LEO remain almost unchanged in the broader market. The data supports the rotation of funds to highly liquid and volatile assets, but this is not a comprehensive altcoin season, nor can it confirm the targeted inflow of institutional funds.

Even so, the breadth is still limited. Stagflation varieties such as Tron and UNUS SED LEO did not participate in this round of rally, further confirming that this was a carefully calculated capital rotation rather than an indiscriminate altcoin carnival.

How the Treasury's policy shift ignites the fuse

The broader turning point began when the U.S. Treasury announced plans to double the size of each round of long-term bond repurchase operations from US$2 billion to at least US$4 billion. Long-term yields then weakened, bringing instant benefits to Bitcoin, Ethereum and gold.

The U.S. Treasury Department is expanding its long-term bond repurchase program. This policy is not a disguised quantitative easing, but rather unblocks key liquidity channels for old government bonds, drives yields downward, and forces funds chasing income to spill out along the risk curve.

This macro liquidity injection directly impacted the digital asset market, which had fluctuated sideways in a narrow range for several weeks. Once prices break through key resistance levels, trapped short positions are squeezed violently. CoinGlass data shows that the liquidation event on August 19 was the eighth largest liquidation event in cryptocurrency history, with a liquidation scale of US$2.99 billion.

Catch up with the stock market, but throw away the "undervalued" label

Bulls like to use relative value narratives. U.S. stocks hit record highs this month, with the S & P 500 closing at 7,798.99 points on August 13, prompting UBS to raise its year-end target to 8,100 points, citing technology stock profitability and artificial intelligence capital expenditures.

Cryptocurrencies entered the week still in the aftermath of weeks of shrinking volatility. Using traditional stock metrics to call tokens "undervalued" is inaccurate-unlike stocks, tokens have no quarterly earnings or predictable cash flow multiples. But price movements tell a simpler story: As stock investors flock to buy artificial intelligence winners and safe-haven gold, cryptocurrencies are marginalized, thus becoming a huge sponge for newly unleashing macro liquidity.

Institutional trading desks smell momentum, but remain cautious

Wall Street trading desks are closely monitoring the trend, but caution remains the main theme. CF Benchmarks pointed out that its institutional factor basket rebounded by 16.2% after six consecutive weeks of declines, and pointed out that funds were highly concentrated in high-beta large-cap stocks rather than pushing up the entire market evenly.

Jefferies analysts urged clients to remain calm, saying it was too early to declare a structural bull market because regulatory milestones such as the Clarification Act were still pending. This is a reasonable warning. Short squeezing can push prices high based on rapid momentum alone, but the long-term health of the market depends entirely on whether real buyers enter after the liquidation tide subsides.

How to identify a real trend shift?

Focus on the following three key signals to determine whether this catch-up can continue:

Bitcoin holds the breakthrough zone

Once derivatives positions cool down, Bitcoin needs to establish a solid foundation at US$78,500 or above, rather than sliding back into its original range.

Altcoins expand in breadth

Ethereum, Solana, XRP and Chainlink continue to outperform the market in an orderly manner, which reflects the health of the market more than the isolated surge of tokens.

Macroeconomic positive conditions continue

Bond yields continue to ease and the US dollar weakens, which is the key to maintaining a risk-appetite environment.

If Bitcoin reverses and retreats and breaks through gains, this week will be remembered only as a textbook leverage liquidation. If the macro shift makes crowded stock trading out of favor, it will fundamentally rewrite the cryptocurrency script. At present, the market has proved an undeniable fact: cryptocurrency has once again become the fastest horse in the macro competition.