Key Takeaways:
Bitcoin futures climbed nearly $10,000 after President Trump called on Congress to pass the Clarity Act, driving a broad rally across cryptocurrencies and crypto-tied stocks.
Bitcoin rose 22 percent to $81,000 in five days after Trump urged Congress to pass the Clarity Act, a federal digital-asset framework.
"Happy to be short Bitcoin to Joe at $77,000. Check-in in a year. Winner/loser gets great/suck bragging rights," Mike McGlone, strategist at Bloomberg Intelligence, said.
The rebound pushed Strategy's 840,447 BTC holdings back into profit, with the position valued at roughly $68.1 billion against a $63.36 billion acquisition cost. The company's average purchase price of $75,385 per coin was crossed as Bitcoin broke above $81,000, converting an estimated $9.5 billion paper loss into a $4.7 billion unrealized gain within a week.
Bitcoin now faces its January 2026 high near $97,900 before $100,000 becomes the next psychological target. A 29 percent gain from current levels would restore six-figure pricing, but the rally's durability depends on whether ETF inflows and regulatory momentum can replace forced short covering as the primary demand driver.
The rally accelerated after Trump on Wednesday urged Congress to advance the Clarity Act, which would divide digital-asset oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission. CFTC Chair Michael S. Selig said Thursday that he directed staff to prepare crypto market structure rules in case Congress fails to pass the legislation.
Spot Bitcoin ETFs attracted roughly $1.6 billion in inflows this week, according to data cited by 247wallst.com, as the short squeeze that drove prices higher began attracting organic buyers. Bitcoin briefly traded above $81,000 before settling near $77,700 on Aug. 21.
Strategy, formerly MicroStrategy, did not announce a new Bitcoin purchase during the latest rally. Instead, it strengthened cash reserves after selling 18.26 million MSTR shares for approximately $2.01 billion. The company set aside $1.59 billion in a separate cash reserve to support future purchases, while its primary US dollar reserve increased to around $5.1 billion.
Every $1,000 change in Bitcoin's price shifts the value of Strategy's holdings by approximately $840 million, making the company one of the most visible proxies for institutional Bitcoin exposure. Strategy shares rose roughly 10 percent in pre-market trading to $120, their highest level in two months.
McGlone's bet with Carlasare follows repeated predictions that Bitcoin could fall to $10,000. The Bloomberg Intelligence strategist has issued the warning since November 2022, when he said Bitcoin risked "revisiting $10,000 support." He revived the forecast in 2023, 2025, and again in June 2026.
Carlasare, who accepted the wager, argues that nobody can reliably predict Bitcoin's next major move. "When people tell you there's no chance for Bitcoin to do a 3x or 5x in a relatively short period, just know that's the voice of a person who has confused what they have seen with what is possible," he said.
The debate intensified after BTC's latest rally caught bearish traders off guard. On-chain data showed short positions becoming increasingly crowded before the rally, creating conditions for a short squeeze.
The Clarity Act's fate in Congress and the CFTC's parallel rulemaking will determine whether the current rally has legs. If ETF inflows persist and long-term Treasury yields remain contained, Bitcoin could challenge its January high before year end. A retreat toward Strategy's $75,385 cost basis would quickly erase the company's paper gains and test the durability of the regulatory-driven rebound.
This article is for informational purposes only and does not constitute investment advice.
