Bessent Effect Unlikely to Spur Bitcoin Bull Run; Rally Driven by Short Covering

This framing shifts the focus from policy headlines to market mechanics, suggesting the recent move is a technical rebound rather than a shift in structural demand. The implication is that without genuine spot buying, the rally lacks a durable foundation, leaving the asset vulnerable to macro headwinds. For market participants, the key signal is whether volume and open interest confirm a change in positioning or merely reflect squeezed shorts. Watch whether sustained inflows emerge, as that would separate a reflexive bounce from a trend with legs.