Over five days in August, Bitcoin surged 24.6% while coin-denominated open interest fell 12.6%, indicating the rally was driven by short position liquidations rather than fresh bullish bets. Approximately 64,000 BTC worth of open interest was closed out, with short positions accounting for 89% of every liquidated dollar. The options market broke a 361-day streak of puts pricing richer than calls in a single session, and Bybit’s volatility index traveled four times its normal daily range in one day. This week, Bitcoin reclaimed the $80,000 level after the Federal Reserve’s first rate hike since 2023, triggering another $230 million in Bitcoin short liquidations and over $445 million across the broader market.
Source: Read the original article
