Bitcoin Faces Make-or-Break Test Above $80K as ETF Demand Soars
Bitcoin's recent price surge has resulted in a significant reduction of leverage across the market, according to Glassnode. The firm reported that August 19 marked the largest single-day short liquidations since 2019, with 85% of all liquidations being short positions.
The data also shows that the futures open interest decreased by 11% in coin terms, despite the dollar value of the futures market increasing due to Bitcoin's price appreciation. This suggests that the move was driven by deleveraging rather than a buildup of new speculative positions.
Furthermore, the funding rates remained subdued throughout the rally, with perpetual funding staying close to neutral and occasionally turning negative. Glassnode described the rally as a 'stop-cluster flush,' indicating that the funding data showed neither a crowded short position before the rally nor an aggressive long chase afterward.
The rebound was strengthened by capital flowing back into US spot exchange-traded funds (ETFs), with $2.23 billion in net inflows during the squeeze window. This represented the strongest seven-day intake of the year, and the largest single-day inflow since January 14.