Who Is Fueling BTC's Biggest Rally in Two Years? Data Reveals the Real Driving Force Behind the Futures Market

Shorts sacrifice to heaven, boundless power.

Author: Gemini, TechFlow

The current market has entered a phase of renewed trading in legacy assets, with some altcoins experiencing long-awaited rallies.

Naturally, the foundation for this entire trend was Bitcoin reclaiming the $80,000 level.

Looking back further, in mid-August, Bitcoin surged 24.6% in just five days, marking the largest weekly gain during the correction period over the past two years. Faced with a breakout of this magnitude, conventional market wisdom often attributes it to the entry of macro-level capital or a full recovery of bullish sentiment.

However, the situation is not that simple. The current driving force in the crypto market still stems from competition among existing capital, particularly in the derivatives market.

Recently, Glassnode and Bybit jointly released a report on the crypto derivatives market, which pointed out that the true catalyst for this rally was not new long positions being opened, but a "short squeeze" driven by short liquidations.

By examining cross-sectional data from the derivatives market, we can clearly reconstruct the underlying mechanics behind this rally.

When BTC Price Rises Simultaneously with Leveraged Position Exit