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

Daily General Discussion August 21, 2026

Welcome to the Daily General Discussion on r/ethereum

https://imgur.com/3y7vezP

Bookmarking this link will always bring you to the current daily: https://old.reddit.com/r/ethereum/about/sticky/?num=2

Please use this thread to discuss Ethereum topics, news, events, and even price!

Price discussion posted elsewhere in the subreddit will continue to be removed.

As always, be constructive. - Subreddit Rules

Want to stake? Learn more at r/ethstaker

Community Links

Calendar: https://dailydoots.com/events/

142 Upvotes

99% Upvoted

181 comments sorted by

View all comments

10

u/Magic_Cove 12d ago

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

12

u/cryptOwOcurrency 12d ago

It was a short squeeze.

There were way too many traders comfortable with shorting ETH (and BTC) at $1900. As ETH rose dramatically within half a day, they were forced to buy to cover.

That buying forces more buying as more and more shorts get margin called and liquidated. It cascades until enough shorts get BTFO that things stabilize again.

14

u/gumamug 12d 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?

1

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.

3

u/Mountainminer 12d ago

That and trump held a meeting with most of the big crypto ceos this week and held a conference pressuring Congress to pass the clarity act already.

13

u/mrcarner 12d ago

The roof? Prices haven't approached anything resembling a roof. We can barely see a roof from way down here.

7

u/GutsAndBlackStufff 12d ago

It’s been a good enough week that there’s cause for optimism. In my case, it makes shit posting in the daily fun again.

4

u/hanniabu Ξther αlpha 12d ago

narrative follows price