Bitcoin gained 24.6% across five days in August, with short-position liquidations accounting for 89% of every liquidated dollar, according to a report from Glassnode and Bybit cited by Decrypt. The analysis found that the rally unfolded even as active leverage in the market declined. The findings suggest that forced closures of bearish positions were the dominant source of liquidation-driven activity during Bitcoin’s sharpest rally in two years. Rather than reflecting a broad increase in leverage, the move was characterized by the unwinding of shorts as Bitcoin advanced. The report provides a snapshot of derivatives-market positioning during the five-day climb, highlighting the role of short liquidations in the cryptocurrency’s August performance.
