Analysis: This round of BTC rally is primarily driven by spot buying, with profit-taking positions potentially triggering the largest sell-off wave of the year

Odaily News, Bitfinex's latest report indicates that Bitcoin's recent rise to multi-month highs has been driven mainly by spot demand and short covering, rather than new leverage. Data shows that during this rally, BTC's price increased approximately 10% to 11%, while open interest only rose by about 4%, suggesting that leverage is not the primary driver, and the sustainability of this trend may therefore be stronger than a typical short squeeze.

Bitfinex noted that over the past five months, BTC buyers' main cost range has been concentrated between $68,000 and $69,000. As long as the price remains above this range, most recent buyers remain in profit. Meanwhile, U.S. spot Bitcoin ETFs saw net inflows of $606 million on August 20, the highest single-day total since May.

However, it warned that a large amount of BTC currently in profit is being transferred to exchanges. If this translates into actual selling pressure, it could trigger the largest profit-taking wave so far in 2026. (Bitcoin.com News)