Opinion: The B Word Effect Is Not Enough to Bring Bitcoin Back to a True Bull Market, This Rally Is Mainly Driven by Short Covering

BlockBeats News, August 26th, Bloomberg reporter Emily Nicolle wrote that Bitcoin saw a 23% surge in a single week recently, marking the largest weekly gain in over 3 years and breaking out of a sideways trend since the summer. U.S. Treasury Secretary Yellen proposed expanding the long-term bond repurchase size, leading to market concerns about U.S. debt and dollar devaluation, driving funds towards Bitcoin and other alternative assets. However, after Bitcoin surged past $80,000 on Tuesday, it has stabilized once again, indicating that this single catalyst alone is not enough to propel the market back into a true bull run.

Nicolle pointed out that the narrative of Bitcoin as a hedge against the dollar and inflation still lacks sustainability. Last October, after Trump renewed threats of tariffs against China, Bitcoin plunged over 12% within 24 hours, while gold reached a historic high. Since 2026, gold has risen by over 7%, whereas Bitcoin, even with its recent rebound, is still down nearly 10%.

She believes that the simultaneous rise of gold and Bitcoin last week does not prove that they have the same safe-haven properties, as much of this round of the crypto market surge was driven by short covering. Strategy chairman Michael Saylor called on traders to continue buying Bitcoin during the surge, but his company did not increase its holdings accordingly.

Furthermore, the CLARITY crypto market structure bill remains stalled due to disagreements over ethical clauses, with the Senate expected to reconsider it only by mid-September, leaving limited time before the mid-term elections in November. Bitcoin has yet to form a stable and compelling value narrative, and in day-to-day payments, users still prefer to use stablecoins or cash.