Bitcoin Surges on Massive Short Covering, But Analysts Remain Skeptical
Bitcoin's recent surge to $79,500 was driven by a massive short covering of nearly $3 billion in a day. This sudden increase has left analysts hesitant to declare a full reversal, despite most indicators pointing to extreme downturn levels.
According to historical models, the real accumulation phase for Bitcoin is postponed until fall, as long-term holders continue to offload coins and new capital has yet to arrive. The market remains thin, which is why many are skeptical about this being a genuine reversal.
The Ethereum network is also facing disruptions due to an upcoming update, specifically the Glamsterdam update, which will change the fee calculation logic. This change may cause older crypto wallets with fixed limits to be rejected by the blockchain, even though developers have made this move consciously to slow database growth and preserve decentralization.
U.S. regulators, including the SEC and Treasury, have introduced their own strict rules for crypto, which directly pressures lawmakers stuck in disputes. These new rules leave stablecoins without government insurance, but also provide immediate clarity for the market.