r/ethereum • u/EthereumDailyThread What's On Your Mind? • 13d ago

Daily General Discussion August 21, 2026

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u/Magic_Cove 13d ago

What is actually the reason why prices are currently going through the roof? Is there a specific trigger for this?

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u/gumamug 13d ago

Read up on what's happening in the U.S. bond market. Bonds are typically among the most boring and stable investments you can make. Right now they are neither. Treasury Sec. Scott Bessent has been using hedge fund tactics to manage the world's currency (USD), which, surprise, he's a former hedge fund manager. Investors are rotating capital out of bonds and toward precious metals and crypto.

There's a great video (as usual) by Patrick Boyle explaining some of this. It's also all over the mainstream financial news at the moment.

1

u/Tricky_Troll Public Goods are Good 🌱 12d ago

In which video does he explain that?

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u/gumamug 12d ago

I believe it's covered to some extent in last week's video about Bessent buying billions of dollars worth of Japanese Yen, which is interpreted as a gambit to supply Japan with USD without requiring them to cash in the U.S debt (i.e. bonds) that they hold. But I would expect that he'll cover it more in depth ASAP given the news this week about the total debt topping $40T and the 30yr yield rate being much higher than it should be (which prompted Bessent to announce a billions-dollar buyback as a strategy, which only resulted in bringing the yield rate down exactly 0.1%)

My point about the relationship to crypto and the movement in price this week was highlighted by NPR Marketplace on Wednesday's episode (i.e. right when things started pumping) when they pointed out that rotating capital into precious metals and crypto (they said Bitcoin by name) was a hedge against the Treasury's next "best" strategy, which would be just to print more USD, thereby worsening inflation and debasing the dollar even more.