Bitcoin’s latest rally is being driven partly by short covering rather than fresh leveraged positions, QCP Research says. Open interest has declined as BTC advanced, while spot Bitcoin ETF inflows are nearing the 95th percentile of the past year and adding demand. QCP warned that the rally could become more fragile if short covering slows without sufficient new buying. Strategy raised $2.01 billion through an at-the-market equity sale between August 17 and 23, but its Bitcoin holdings remained unchanged at 840,447 BTC for a second consecutive week. The company also built a $1.59 billion flexible cash reserve, taking total dollar assets to $6.69 billion. Its average purchase price remains $75,385 per BTC, and QCP viewed the cash as support for preferred stock and post-dilution flexibility rather than evidence of immediate accumulation. Macro uncertainty remains elevated after July Federal Open Market Committee minutes showed a 9-3 vote, including three officials who preferred a 25-basis-point rate hike. Markets are watching Kevin Warsh’s Friday appearance at Jackson Hole, Treasury Secretary Scott Bessent’s plan to double long-term Treasury buybacks to $4 billion per operation from September 9, jobless claims due Thursday and developments involving Iran and the Strait of Hormuz. Bitcoin may remain range-bound into the September Federal Reserve meeting as investors assess whether demand can sustain the rally.