BTC rally shows spot demand as SRV hits 2.94 while futures OI falls

Bitcoin's latest surge differed from earlier rallies because spot demand increased as futures open interest (OI) declined, crypto analyst Murphy said on X. Large-scale short liquidations occurred during the move, suggesting the rally was driven more by unwinding existing short positions than by new leveraged bets. Spot relative volume (SRV), a measure comparing exchange spot activity with its recent average, reached 2.94 on Aug. 19-20, nearly three times the 30-day average. Murphy said the buying could be a positive signal seen for the first time since the market entered a bearish phase, but cautioned that it does not by itself confirm a trend reversal. He also cited a break above short-term holder realized price (STH-RP), a market-level indicator based on recent holders' acquisition costs.

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