Bitcoin Rebound Driven by Spot Demand and Large Holder Support

Bitcoin's price has surged about 26% from its mid-August low after a short-liquidation event accelerated the rebound, according to data from Glassnode. The August 19 move produced the largest one-day liquidation event since 2019.

The short squeeze cleared much of the liquidation liquidity around Bitcoin, with short positions accounting for most of the liquidations across major centralized exchanges. However, spot demand also supported the move, with US spot Bitcoin ETFs recording $2.23 billion of net inflows over seven days.

Large holders have added support to the rebound, as entities holding more than 100,000 BTC increased their balances by 59,100 BTC since June 30. In contrast, entities holding between 1,000 and 10,000 BTC reduced their balances by 50,500 BTC.