ChainThink report, August 25: According to market data, Bitcoin has rapidly surged from around $62,000 to near $80,000 in recent days, recording the second-largest weekly increase in nearly five years.

However, during this rally, Bitcoin-denominated open interest (OI) in futures contracts has continued to decline, dropping to approximately 587,600 BTC—the lowest level in the past five months.

According to Glassnode data, the upward movement was primarily driven by short covering and liquidations, with multiple billions of dollars in short positions being unwound, triggering a Short Squeeze. The perpetual contract annualized funding rate remains below 10%, indicating that leverage is not excessively crowded.

Furthermore, open interest in crypto margin futures has fallen to a historical low of about 52,000 BTC, accounting for only 11% of the overall market. A rising share of cash-margin positions helps mitigate the cascading risk of “collateral shrinkage—forced liquidation—further price decline” during market downturns.

With lower derivatives market participation and a healthier leverage structure, this rally may exhibit stronger sustainability.