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The case for a structural shift in $BTC pricing rests on the magnitude of the recent rally, yet the mechanics behind the move complicate that narrative significantly.
Glassnode and Bybit data show that the 24.6% gain over five days in August occurred while coin-denominated open interest dropped 12.6%.
This divergence suggests the price action was fueled by the forced unwinding of bearish positions rather than an influx of fresh bullish capital.
The risk is that traders interpret this squeeze as a signal of durable demand when the underlying leverage actually contracted.
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