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Bitcoin short squeeze explains today’s gain: US$54.74 million in shorts wiped out

Bitcoin short squeeze explains today’s gain: US$54.74 million in shorts wiped out

On August 19, 2026, Bitcoin trades at US$64,656.83, up 0.538 per cent in the past 24 hours. This modest gain slightly outperforms a flat broader market. The primary catalyst behind this movement stems from fading expectations for a Federal Reserve interest rate hike.

What fascinates me most is the strong negative correlation Bitcoin now exhibits with major equity ETFs over the past week. This decoupled, macro-driven move signals a maturing asset class that no longer merely mirrors traditional risk assets. We are witnessing a fundamental shift in which digital scarcity responds directly to global monetary policy rather than blindly following the Nasdaq.

The broader economic environment provides the clearest explanation for this divergence. Goldman Sachs chief economist Jan Hatzius recently stated that a September Federal Reserve rate hike remains very unlikely. This assessment directly reduces projected borrowing-cost pressures and boosts demand for risk assets such as Bitcoin.

Lower expected rates inherently increase the appeal of scarce, long-duration assets, providing a fundamental tailwind for the leading cryptocurrency. Simultaneously, traditional markets face severe headwinds.

A sharp sell-off in technology and semiconductors on Wall Street pressured Asian and global equities today. The Nasdaq 100 dropped 1.7 per cent, and the S&P 500 fell 0.7 per cent, marking a third consecutive session of losses. Semiconductor stocks endured a steep 5 per cent rout.

Furthermore, the US 30-year Treasury yield surged above 5.30 per cent, touching multi-year highs near 5.34 per cent, while 10-year yields hovered around 4.73 per cent. These rising yields fuel legitimate concerns about stagflation and borrowing costs, making Bitcoin’s relative stability even more noteworthy. Traders who track market liquidity and ETF flows understand that capital rotates toward assets offering genuine scarcity when fiat systems show strain.

Regulatory clarity continues to shape the institutional landscape in profound ways. The US Securities and Exchange Commission recently proposed Regulation Crypto Assets, marking a highly anticipated regulatory shift. This draft policy outlines a one-time exemption allowing crypto firms to issue up to US$5 million in tokens over a four-year window.

It also establishes a maximum of US$75 million per 12-month period for regular offerings, provided firms meet stringent transparency and financial accounting disclosure requirements. Crucially, this rule sets a safe harbor framework to keep qualified digital assets from automatic classification as traditional investment contracts.

This pragmatic approach aligns with my long-held view that traditional financial tests, such as the Howey test, fail to capture the nuances of decentralised systems. Concurrently, global traders are positioning themselves ahead of the US Federal Reserve’s July meeting minutes, which the central bank will release later today to offer definitive hints about the future macroeconomic interest-rate path.

An upcoming White House Innovation Summit involving policymakers and key industry leaders further insulates the Bitcoin floor through market anticipation of constructive dialogue. Objective research consistently shows that progressive regulatory frameworks foster genuine innovation rather than stifling it.

Beyond regulatory frameworks, tangible financial innovation continues to expand globally. On the equity front, the Swedish entity Bitcoin Treasury Capital AB will distribute the first European Bitcoin-backed corporate dividend. This debt-free fund houses roughly 172 to 174 BTC and distributes a 10 per cent annual yield monthly through fixed-income preferred shares trading on the Sweden Spotlight Stock Market. This development demonstrates that digital assets now serve as viable corporate treasury instruments that yield predictable returns. Objective analysis requires acknowledging contrarian perspectives.

Senior Bloomberg Intelligence analyst Mike McGlone recently reiterated a stark macroeconomic warning. He asserts that Bitcoin’s inability to securely break and hold the US$69,000 resistance level signals an unwinding of prior liquidity stimulus. He warns this dynamic could press the asset back toward a baseline valuation as low as US$10,000.

While I respect rigorous technical analysis, I view such extreme bearish targets as an oversimplification of the robust institutional infrastructure now supporting the asset. My own critical evaluation of blockchain-related legal matters suggests that foundational network effects provide a much higher baseline valuation than legacy analysts typically project.

The immediate price action also reflects intense technical market mechanics rather than purely organic spot buying. A buildup of bearish bets in derivatives markets triggered a cascade of liquidations as the price rose. Over the past 24 hours, US$58.77 million in Bitcoin positions faced liquidation. Short positions comprised US$54.74 million of that total, according to Coinglass data. This forced covering added significant fuel to the recent uptick.

A derivatives-driven short squeeze amplified the move. Traders must now watch funding rates closely. If these rates turn significantly positive, it could indicate renewed leveraged long positioning, which often precedes heightened volatility. Recognising these mechanical drivers is essential for anyone navigating modern crypto markets, as derivatives volume frequently dictates short-term price discovery more than spot market fundamentals.

 

Source: https://e27.co/bitcoin-short-squeeze-explains-todays-gain-us54-74-million-in-shorts-wiped-out-20260819/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Despite the rally, the CMC Fear and Greed Index remains at 39, indicating underlying market caution

Despite the rally, the CMC Fear and Greed Index remains at 39, indicating underlying market caution

The global cryptocurrency market currently exhibits a fascinating divergence from traditional equities. Digital assets recently surged 1.52 per cent to reach a total valuation of US$2.19 trillion. This rally highlights a striking negative correlation of 90 per cent with the broader S&P 500 index.

Bitcoin leads this charge, rising 2.23 per cent to US$64,300.94 in the past 24 hours. The primary catalyst for this upward momentum involves a rapid reassessment of United States monetary policy. Goldman Sachs Chief Economist Jan Hatzius recently declared that a September Federal Reserve interest rate hike remains highly improbable.

Traders immediately absorbed this guidance and forcefully reduced their expectations for tighter monetary conditions. This sudden shift in sentiment severely weakened the United States dollar and simultaneously enhanced the appeal of scarce digital assets.

Bitcoin now shares a strong 75 per cent correlation with gold. This tight relationship confirms that sophisticated investors increasingly treat the leading cryptocurrency as a premier inflation hedge and a reliable store of value during periods of fiat currency debasement. We are witnessing the maturation of Bitcoin from a speculative fringe asset into a recognised macroeconomic safe haven tool.

Derivatives markets and technical breakouts significantly amplified this fundamental macroeconomic shift. Bitcoin open interest climbed 11.1 per cent within a single day as leveraged traders positioned themselves for further upside. This assertive positioning triggered a substantial short squeeze, liquidating US$84.81 million worth of positions. Short sellers absorbed the vast majority of these painful losses as the price violently reversed their bearish bets.

The underlying spot market validated this derivative action with a staggering 138.51 per cent surge in trading volume. This immense buying pressure allowed the asset to break decisively above the critical US$63,000 resistance level. Sustaining this newly established support zone between US$63,000 and US$63,500 remains absolutely vital for maintaining the current bullish structure. A failure to hold this floor would invalidate the breakout and invite renewed selling pressure.

Ethereum mirrors this broader strength, gaining 1.68 per cent to trade at US$1,905.86. While the second-largest digital asset benefits from positive market momentum, its ongoing performance is truly driven by a major corporate accumulation narrative. Bitmine Immersion Technologies recently acquired an additional 9,926 tokens last week. This strategic acquisition brings their total treasury to a staggering 5.815 million tokens, representing approximately 4.8 per cent of the entire circulating supply.

Chairman Tom Lee directly connected this relentless buying spree to the Ethereum-to-Bitcoin ratio finally breaking a multi-year downtrend. He specifically highlighted growing corporate demand driven by asset-tokenisation initiatives and advanced artificial intelligence agent applications. This continuous corporate buying creates a significant demand sink, fundamentally validating the network’s long-term utility thesis.

On-chain metrics further reinforce this optimistic corporate narrative for Ethereum. A prominent whale recently transferred 32,400 tokens worth roughly US$61.46 million directly into a staking contract. This considerable move signals deep long-term conviction and immediately removes sell-side pressure from the open market. Despite this strong underlying activity, the relative strength index currently sits at a moderate 54.96.

This neutral momentum indicator suggests the asset will likely experience a steady grind higher rather than a violent vertical spike. Buyers must successfully defend the immediate support zone between US$1,890 and US$1,900 to maintain the prevailing uptrend. A successful defence will likely prompt a test of the next major liquidity cluster near US$1,925. Conversely, a drop below US$1,870 risks a swift decline toward the 200-day moving average near US$1,887.

The broader digital asset ecosystem also benefits immensely from this renewed corporate interest and favourable regulatory clarity. The Layer 1 category recently emerged as the top trending narrative by gaining 2.11 per cent and dominating social discussions. This specific sector outperformance highlights a clear rotation into high-beta ecosystem tokens that power foundational blockchain infrastructure.

Furthermore, the enduring positive impact of the March 2026 regulatory framework established by the Securities and Exchange Commission and the Commodity Futures Trading Commission continues to provide massive tailwinds. This crucial regulatory clarity officially classified major assets as digital commodities and significantly reduced the lingering regulatory overhang for prominent networks. Clearer regulatory pathways naturally attract larger pools of traditional capital that previously avoided the sector due to compliance uncertainties.

Despite these overwhelmingly positive technical and fundamental developments, underlying market sentiment remains surprisingly cautious. The CMC Fear and Greed Index currently registers a low reading of 39, which firmly places the market in a state of fear. This cautious sentiment aligns with recent spot exchange-traded fund outflows observed by market participants over the past week.

Investors must closely monitor the upcoming United States spot Bitcoin exchange-traded fund flow data on August 18 to determine if corporate selling pressure finally abates. Furthermore, the release of the Federal Reserve July meeting minutes on August 19 will provide essential policy clues that could drastically alter the existing macroeconomic landscape. These upcoming catalysts will dictate whether the current rally extends or merely represents a temporary consolidation phase.

My assessment concludes that the digital asset market currently enjoys a cautiously optimistic momentum driven by tangible corporate activity. The combination of structured buying, supportive macroeconomic relief, and clear technical breakouts paints a highly constructive picture for the immediate future. Bitcoin needs to successfully test the US$65,000 mark, while Ethereum must capture the US$1,925 liquidity cluster.

In my opinion, the total market capitalisation must also push past the US$2.23 trillion resistance level, representing the 23.6 per cent Fibonacci extension. If these major digital assets fail to hold their current pivot points, the market will inevitably retest lower support zones and resume its broader multi-month consolidation phase. Only sustained volume and unwavering corporate commitment will validate this optimistic structural shift.

 

Source: https://e27.co/despite-the-rally-the-cmc-fear-and-greed-index-remains-at-39-indicating-underlying-market-caution-20260818/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

The Kospi enters a bull market while crypto consolidates: Where did the risk appetite go

The Kospi enters a bull market while crypto consolidates: Where did the risk appetite go

Global equity exchanges expanded following an inflation report. The S&P 500 index gained 0.26 per cent to reach 7,748.50 while the Nasdaq Composite added 0.54 per cent to close at 26,588.49. Technology and artificial intelligence companies like CoreWeave and Super Micro Computer powered this equity rally.

Asian bourses mirrored this optimism as the MSCI Asia Pacific index rose 0.8 per cent. Major chipmakers, including Samsung Electronics and SK Hynix, led the regional charge. South Korea saw strength as the Kospi Index jumped 3.7 per cent, entering a technical bull market on renewed momentum in artificial intelligence. Headline Consumer Price Index data showed a 0.1 per cent monthly gain and a 3.4 per cent yearly advance.

Core inflation metrics advanced 0.2 per cent monthly and 2.5 per cent yearly. This tame July inflation report eased fears regarding an imminent Federal Reserve interest rate hike. Money markets currently price in less than a 50 per cent chance of a September rate hike. Brent crude dipped below US$83 to snap a six-day rally. I view this divergence as a signal that institutional allocators favour tangible cash flows over speculative ledgers.

The broader digital asset space failed to participate in this traditional financial optimism. The total cryptocurrency valuation declined 0.55 per cent to US$2.17T over a 24-hour period. This modest drop highlights a distinct lack of positive catalysts and residual selling pressure within a low-liquidity environment.

Digital tokens exhibit remarkably weak correlations with traditional safe havens and equity benchmarks. The space shows only a nine per cent correlation with the S&P 500 and a mere five per cent correlation with Gold. Trading volume fell 8.23 per cent on a weekly basis, reflecting widespread participant apathy.

The Fear and Greed Index currently sits at 37, illustrating this lack of conviction. Institutional developments also failed to ignite buyer enthusiasm. Goldman Sachs recently acquired a Bitcoin income exchange-traded fund business via NEOS. Participants ignored this news. I believe the decentralised sector suffers from an attention deficit and requires a unique internal narrative to attract fresh capital.

Specific sectors and isolated security incidents dragged down sentiment. The Liquid Staking Derivatives sector fell 0.02 per cent and severely underperformed the broader digital asset space. A major security breach on the Harmony network created immense panic among retail participants. Harmony token prices crashed over 30 per cent after an attacker minted four billion unauthorised tokens. This massive unauthorised supply influx forced immediate liquidations across the network.

While this specific event does not pose a systemic risk, such incidents severely dampen morale. These breaches highlight the ongoing security vulnerabilities inherent in decentralised infrastructure. Macroeconomic factors also threaten to disrupt liquidity conditions.

The Bank of Japan might implement a potential rate hike in September to influence global liquidity flows. These isolated security breaches are stark reminders of the fragile infrastructure underlying these speculative networks and a primary reason for traditional allocators’ continued scepticism.

Participants must watch key technical thresholds to determine the trajectory of the total valuation. The yearly low of US$2.15T currently acts as the most crucial support zone. A decisive break below this floor could trigger a test of the 78.6 per cent Fibonacci retracement near US$2.09T. Negative exchange-traded fund flows would likely accelerate a drop into the US$2.09T-US$2.12T range.

Conversely, reclaiming the US$2.19T mark, representing the seven-day simple moving average, could signal a short-term bounce. Buyers need to see a sustained rise in spot volume above US$120B to confirm renewed interest and validate any upward price movement.

Current price action stays inside a tight range while automated algorithms fiercely defend these mathematical boundaries against aggressive intraday selling. This technical setup is a classic consolidation phase where the space simply waits for a major external catalyst to define the next directional move and establish a clear trend.

Bitcoin mirrored the broader stagnation despite its strong correlation with traditional equity benchmarks. The premier cryptocurrency declined 0.66 per cent, trading at US$63,383.12. Bitcoin currently maintains a strong 69 per cent correlation with the Dow Jones exchange-traded fund, indicating a shared macro-driven movement.

The asset briefly rallied past US$64,000 following the release of the cooling July Consumer Price Index data. Buyers quickly faded these gains as participants had already completely priced in this benign inflation report and adjusted their portfolios accordingly. The total digital asset valuation dipped 0.59 per cent, reflecting a broader wait-and-see sentiment among speculators who anticipate further volatility.

The upcoming September Federal Open Market Committee meeting decision will serve as the next macro trigger to guide institutional positioning. I view Bitcoin primarily as a high-beta proxy for traditional technology rather than an effective inflation hedge or a distinct alternative asset class.

Technical indicators and derivatives data confirm this profound lack of bullish conviction for the leading cryptocurrency. Bitcoin currently trades below its 50-day moving average of US$63,624 and its 200-day moving average of US$64,173. This configuration strongly indicates bearish medium-term momentum across the daily timeframe. The Relative Strength Index currently reads 43, indicating neutral to weak momentum without reaching oversold territory.

Derivatives exchanges remain calm and completely devoid of aggressive speculative positioning from large institutional players. Bitcoin liquidations totalled a mere US$19.85M over the past 24 hours, a 55.64 per cent drop from the prior day, highlighting the lack of forced selling.

Open interest rose only modestly, illustrating the extreme apathy among leverage speculators who refuse to take large directional bets. This low-leverage environment significantly reduces the immediate risk of a violent short squeeze. I argue that this subdued derivatives activity strips the space of the volatility required to attract active day traders.

Crucial support and resistance boundaries define Bitcoin trading. The US$63,000 level currently acts as major support and aligns closely with the median realised price. A breakdown below this critical floor risks triggering massive liquidations near US$61,000. Such a breach would likely open a direct path toward the US$58,000-US$60,000 range.

Bulls must achieve a decisive daily close above the US$65,000 resistance threshold to invalidate the current bearish structure and invite fresh buying pressure. Reclaiming this specific resistance would open a clear path toward a US$67,000 target and signal a definitive shift in momentum across the entire sector.

Speculators must monitor spot exchange-traded fund flow data to spot early signs of returning institutional demand and validate any upward price movement. Capital clearly prefers the predictable earnings growth of traditional technology giants over the unpredictable fluctuations of decentralised tokens.

I firmly believe the space will remain within this neutral range until a macroeconomic surprise forces allocators to reevaluate their exposure and deploy fresh capital.

 

Source: https://e27.co/the-kospi-enters-a-bull-market-while-crypto-consolidates-where-did-the-risk-appetite-go-20260813/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j