Viewpoint: The Besant Effect is insufficient to bring Bitcoin back to a genuine bull market; this round of rally is mainly driven by short covering.

Bloomberg reporter Emily Nicolle wrote that Bitcoin has rallied 23% in a single week recently, marking its largest weekly gain in over three years and ending its sideways trend since summer. US Treasury Secretary Scott Bessent’s proposal to expand the scale of long-term Treasury repurchases sparked market concerns over US debt and dollar depreciation, pushing funds toward alternative assets like Bitcoin. However, after Bitcoin broke above $80,000 on Tuesday, it has stabilized again, and this catalyst alone is insufficient to drive the market back to a genuine bull run. Nicolle notes that Bitcoin’s narrative as a hedge against the U.S. dollar and inflation remains unsustainable. After Trump reintroduced threats of tariffs on China last October, Bitcoin dropped more than 12% in 24 hours, while gold hit a record high in the same period. Year-to-date in 2026, gold has risen over 7% cumulatively, and Bitcoin, even with its recent rebound, is still down nearly 10%. She argues that the simultaneous rise of gold and Bitcoin last week does not prove they share the same safe-haven attributes, as this crypto rally is largely fueled by short covering. Strategy chairman Michael Saylor called on traders to keep buying Bitcoin during the rally, but his company did not add to its holdings accordingly. Separately, the CLARITY Crypto Market Structure Bill remains stalled due to disagreements over ethical provisions and other issues; the Senate is expected to resume deliberations only in mid-September, leaving limited time ahead of the November midterm elections. Bitcoin has yet to establish a stable, compelling value narrative, and for daily payments, users still prefer stablecoins or cash.