Bitcoin (BTC) has risen about 26% from its mid-August low after a short-liquidation occasion accelerated the rebound. Glassnode stated the August 19 transfer produced the most important one-day liquidation occasion since 2019.
Brief positions accounted for many of the liquidations throughout the most important centralized exchanges. The precise complete was seemingly larger as a result of the dataset excludes Hyperliquid.
ETF Demand and Giant Holders Add Help
The squeeze cleared a lot of the liquidation liquidity round Bitcoin. Glassnode now sees short-liquidation ranges above the market and a smaller pool of long-liquidation ranges under.
The rebound was not pushed solely by pressured closures, as spot demand additionally supported the transfer. US spot Bitcoin ETFs recorded $2.23 billion of internet inflows over seven days, with no outflow days and their strongest weekly consumption of 2026. The interval included the most important ETF creation session since mid-January.
In the meantime, Bitcoin continued transferring away from exchanges as pockets teams modified their holdings. Entities holding between 1,000 and 10,000 BTC diminished their balances by 50,500 BTC since June 30.
In distinction, entities holding greater than 100,000 BTC added 59,100 BTC. This group contains exchanges, custodians and ETF-related wallets.
In the course of the squeeze week, the custody group added 31,500 BTC. Glassnode stated the quantity was related in scale to weekly ETF creations, however the information doesn’t present that the identical cash moved instantly into ETFs.
Each wallet-size cohort additionally moved into internet accumulation on Glassnode’s 30-day development rating. The agency known as it probably the most persistent all-cohort shopping for since late 2024.
Bitcoin Now Faces a Harder Check
Leverage has not returned on the similar tempo as Bitcoin’s value, with futures open curiosity falling 11% in BTC phrases. Perpetual funding remained close to impartial and later turned adverse, suggesting restricted strain from new leveraged lengthy positions.
Past accumulation and leverage, on-chain information locations current patrons beneath value, whereas long-term holders present the principle provide zone above it. Bitcoin is now buying and selling between these teams, making a key market take a look at for demand.
A number of indicators level to the same provide space overhead, together with cost-basis ranges, ask liquidity, choices positioning and remaining liquidation clusters. A sustained transfer by that zone would present whether or not patrons can take up the accessible provide.
The submit From Document Brief Squeezes to Huge ETF Inflows: Every little thing Driving Bitcoin Proper Now appeared first on CryptoPotato.