ME News reports that on August 26 (UTC+8), Bitcoin recently staged a strong rebound, with analysis firms suggesting that an unprecedented short squeeze and policy signals from U.S. Treasury Secretary Scott Bessent may be propelling the market into a new phase of bull cycle adjustment. Data shows that Bitcoin rose approximately 23% over the past week, marking its largest weekly gain since the rebound following the November 2024 U.S. election. Trading activity across the crypto market also rebounded, with spot and perpetual contract volumes surging 188%, and CME Bitcoin futures volume rising 152%. The annualized futures basis climbed to 11.1%, the highest level since January 2025. Additionally, Bitcoin ETFs recorded net inflows of approximately 31,740 BTC over the week—the strongest capital inflow since the market peak in October 2025. Vetle Lunde, Research Director at crypto research firm K33 Research, stated that this rally was initially driven primarily by short covering. On August 19, Bitcoin short positions saw a single-day liquidation of $1.37 billion, a record high, followed by another $739 million in short liquidations on August 21. This massive short squeeze pushed the perpetual contract open interest down to 284,000 BTC, the lowest level since May, while funding rates returned to neutral levels. On the macro front, analysts view signals from U.S. Treasury Secretary Scott Bessent advocating for increased long-term Treasury buybacks as a market catalyst. K33 believes the Treasury buyback program could lower long-term interest rates and boost demand for scarce assets. Meanwhile, Bitcoin’s correlation with gold has risen, reaching a 90-day correlation coefficient of 0.52—the highest since October 2020—while its correlation with the Nasdaq index fell to 0.38, a one-year low. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, argued that Bessent’s recent remarks regarding sanctions on Iran’s financial networks further reinforce Bitcoin’s investment thesis: as the global financial system becomes increasingly influenced by geopolitics, the value of decentralized assets independent of any single nation’s financial infrastructure may continue to rise. (Source: ODAILY)
Bitcoin surges 23% in a week, sparking bull market expectations
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Summary
Bitcoin’s 23% weekly gain through August 26 reflects strong market momentum, marking its largest increase since the November 2024 U.S. election. Short liquidations and Bessent’s policy signals are driving market cycles toward a potential bull phase. Bitcoin ETFs added 31,740 BTC, the highest amount since October 2025. Short liquidations totaled $1.37 billion on August 19 and $739 million on August 21. Bessent’s Treasury buyback plan could lower long-term interest rates and increase demand for scarce assets.
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