BTC rally drew spot demand as open interest fell, analyst says

Crypto analyst Murphy said on X the recent BTC surge stands out from past rallies because spot demand entered the market while futures open interest fell. Murphy said large-scale short liquidations occurred during the latest jump, but OI declined instead, suggesting the rise was driven more by the unwinding of existing short positions than by new leveraged bets. Murphy added that spot relative volume, or SRV, on exchanges reached 2.94 on Aug. 19-20, nearly three times the 30-day average, pointing to an influx of spot buying. Murphy described the spot buying as a potentially positive signal that has appeared for the first time since the market entered a bearish phase, while cautioning it does not by itself confirm a trend reversal. Murphy also said additional signals have emerged, including a break above the short-term holder realized price, or STH-RP, and the