Bitcoin Soars Above $86K as Smaller Holders Rebuild Exposure

Bitcoin's price has surpassed $86,000 after smaller holders reduced their exposure during the July-August market weakness.

A total of 62,335 wallets holding between 0.1 and 1 BTC disappeared, while another 7,159 wallets holding 1 to 10 BTC also vanished before Bitcoin reclaimed $80,000.

This reduction in smaller holder exposure preceded a large short squeeze in global crypto markets, with traders closing roughly $648 million in bearish positions as Bitcoin crossed the $85,000 mark.

Glassnode reported that options leverage was rebuilding near $86,000, although funding stayed below neutral. Open interest put-call ratios also increased as traders positioned around the move.