Bitcoin rallied 24.6% in five August days with short liquidations accounting for 89% of liquidated value, despite declining active leverage.
Macro & Markets ·
Bitcoin climbed 24.6% over five days in August while active leverage fell 12.6%, indicating the rally was driven primarily by forced unwinding of short positions rather than fresh bullish bets. Short liquidations accounted for 89% of all liquidated dollar value during the period, according to data from Glassnode and Bybit covering crypto-native venues through August 23. The options market showed puts had traded richer than calls for 361 consecutive days before a single session reversed that positioning, with the front of the futures curve repricing sharply while longer-dated contracts remained relatively stable—signals the market treated the move as a temporary event rather than a lasting shift.