Spot Buying Drives Bitcoin Rally as Derivatives Leverage Falls

The Bitcoin price rally from $63,500 to $77,700 between Aug. 12 and Aug. 18 was largely driven by spot buying rather than derivatives speculation.

According to analytics firm Santiment, open interest, the total number of outstanding derivative contracts, fell by 11% in BTC terms during this period, dropping to approximately 312,600 BTC on Aug. 23 from about 353,500 BTC before the rally began.

This decline indicates reduced leverage per contract and a shift toward spot-driven buying, which is often considered more sustainable as it reflects genuine demand rather than leveraged bets that can unwind quickly.