Strategy’s 10% Surge: Has Bitcoin Finally Bottomed Out?

The recovery of Strategy (MSTR) and the broad rally in crypto assets during the week of August 20, 2026, have reopened the debate over the formation of a market floor. Bitcoin’s price surpassed $72,000, its highest level since June, while shares of companies tied to the ecosystem posted double-digit gains.

The rally: three concurrent pressure vectors

The upward move can be decomposed into three distinct catalysts, each with particular implications for supply and demand dynamics.

First, the U.S. Treasury’s bond buyback policy. On August 19, the Treasury Department announced the doubling of the minimum long-term bond repurchase amount, raising it from $2 billion to $4 billion per operation starting September 9. This measure, although not constituting direct monetary expansion — the Treasury repurchases existing debt without creating new money — was interpreted by markets as a form of implicit quantitative easing.

The effect on long-term bond yields was immediate: lower yields reduce the opportunity cost of holding non-yielding assets like Bitcoin, and weaken the dollar in relative terms. Matt Mena, a strategist at 21Shares, described this move as a signal that “sends scarce assets and hedges against monetary degradation higher.” Bitcoin ETFs in the U.S. recorded net inflows of approximately $517 million on August 19, their best day since May.

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