Bitcoin Rally Fueled by Unwinding Short Positions

The Bitcoin price surged 24.6% over five days in August, but this rally was not driven by new bullish bets.

A report from Glassnode and Bybit found that the increase came from short positions being unwound, rather than fresh long positions.

This means that as Bitcoin's price rose, traders who had bet against it saw their positions liquidated, contributing to the rally.

The options market also flipped after 361 straight days of puts pricing richer than calls, indicating a one-off event rather than a lasting regime change.