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      Bitcoin Surges 35% Since August Low Amid Declining Open Interest

      Bitcoin has experienced a significant price increase of 35% since reaching its low in August, with current trading levels around $83,000 to $84,000. This rise comes despite a notable decline in the derivatives market, where Bitcoin-denominated open interest has dropped nearly 20%, reaching its lowest levels since March. This unusual trend indicates that the recent price gains are primarily driven by spot buyers and inflows from Bitcoin exchange-traded funds (ETFs), rather than speculative trading in derivatives.

      The contraction in open interest, which reflects the total value of outstanding futures and perpetual contracts, has been particularly pronounced following a record short liquidation event on August 19. During this event, 85% of liquidations were from traders who had bet against Bitcoin, leading to an 11% drop in open interest in coin-denominated terms. Following this, Bitcoin saw a recovery of approximately 26% from its mid-August lows, contributing to the overall 35% increase since then.

      Glassnode highlights that the current market dynamics suggest a maturing structure, where price momentum is increasingly influenced by spot demand and substantial inflows into Bitcoin ETFs. In August, US spot Bitcoin ETFs recorded inflows totaling $2.23 billion during a particularly strong seven-day period. As Bitcoin approaches a critical resistance zone between $84,000 and $86,000, characterized by a significant supply cluster of coins held by long-term holders, market observers are closely monitoring these levels for potential breakout or reversal signals.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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