Bitcoin Rises 24.6% Amid 89% Short Liquidations

Bitcoin (BTC) rose 24.6% over five trading days in August, while open interest in cryptocurrency derivatives decreased by 12.6% during the same period. Eighty-nine percent of total liquidation volume came from short positions, according to a joint report by Glassnode and Bybit based on settlement prices as of August 23, 2026.

The report, which analyzed virtual asset derivatives markets tracked by Glassnode and included four dedicated crypto exchanges (excluding CME), noted that approximately 64,000 BTC in open interest was cleared. The price increase led to significant losses for short positions, triggering forced buy orders as these positions were liquidated. This contrasts with a typical scenario where rising prices and increasing open interest would indicate new long position inflows.

Glassnode described the August 19 short liquidation event as the largest single-day occurrence since 2019. The report emphasized that while large liquidation volumes occurred, it does not necessarily guarantee continued upward momentum. Option markets saw put options trading at higher prices than call options for 361 consecutive days before a brief pause, with Bitcoin option nominal open interest rising from about 25% to nearly 50% of the market during the research period.

Bybit noted that its Bitcoin option trading share reached up to 28% among the four tracked exchanges. The report stated that while expanded options markets reflect increased demand for volatility management and risk control, it does not signal a long-term bullish shift. Short-term futures curve revaluation was significant, but long-term trends showed limited changes.

Glassnode also highlighted that Bitcoin may face resistance from long-term holders and self-custody investors at the $83,000–$86,000 range (approximately KRW 115.12 million to KRW 119.28 million), based on previous analysis.