Bitcoin’s Latest Rally Shows Shift: Spot Demand Rises as Open Interest Declines

BitcoinWorld Bitcoin’s Latest Rally Shows Shift: Spot Demand Rises as Open Interest Declines In a notable departure from previous price surges, Bitcoin’s recent rally appears to be driven by genuine spot market demand rather than speculative leverage, according to crypto analyst Murphy.

The analyst highlighted on X that while the price jump triggered significant short liquidations, the open interest (OI) in futures actually declined, suggesting that the upward movement was fueled by the unwinding of bearish positions and an influx of spot buyers, not by new leveraged bets.

Spot Relative Volume Signals Buying Pressure Murphy pointed to the spot relative volume (SRV) on exchanges, which reached 2.94 on August 19-20, nearly three times the 30-day average.

This metric indicates a substantial increase in spot trading activity, which Murphy interprets as a sign of real buying interest.