Bitcoin and gold rallied as concerns about U.S. debt, the dollar and Treasury markets revived the debasement trade. Bitcoin reached reported highs of $79,500 on Aug. 21 and $79,200 on the following Friday account, later trading slightly above $77,000 after gaining nearly $15,000 in about 48 hours. The move marked Bitcoin’s strongest weekly advance in two years and was supported by Treasury buybacks, roughly $1.6 billion in spot ETF inflows in the older account, about $650 million in U.S. Bitcoin ETF inflows in the newer account, and roughly $4 billion in forced short liquidations. Gold neared $4,600 per ounce. Market sentiment shifted sharply into greed, with the Fear and Greed Index reaching 71 and 72, its highest level since October 2025, although it had not entered extreme greed territory. Analysts remained divided over whether the Treasury-driven short squeeze marked the end of the bear market, with cautious observers warning that rapidly rising greed could precede a reversal and seeking sustained ETF inflows and broader monetary easing.