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Liquidation squeeze clears $500B before crypto investment-product inflows
CoinShares recorded more than $2.9 billion of global crypto investment-product inflows in the week to Aug. 20, after Aug. 19 marked the largest short-liquidation day since 2019, according to Glassnode.
Crypto’s surge earlier this month was driven in part by a liquidation squeeze that helped add roughly $500 billion in market value in days, with Bitcoin running from about $63,500 toward $80,000 last week, according to CryptoSlate. Glassnode said Aug. 19 produced the largest short-liquidation day in its feed since 2019, with exchanges automatically closing short positions as prices moved against traders. That forced bearish bets to unwind into mandatory buying during an already volatile rally, QCP data cited by CryptoSlate showed. As the forced buying began to fade, regulated investment products stepped in. CoinShares recorded over $2.9 billion of global crypto investment-product inflows in the week to Aug. 20, and the first three trading days of the next week added another $1.65 billion, CryptoSlate reported.
CryptoSlate also pointed to changes in futures positioning during the move. QCP’s derivatives data showed Bitcoin rose from roughly $63,500 to around $80,000 while BTC-denominated futures open interest fell from about 646,000 BTC to 588,000 BTC, a decline of roughly 58,000 BTC or about 9%, suggesting traders did not immediately rebuild long leverage at the same pace that prices increased.
CoinShares’ August fund-manager survey found respondents increased crypto allocations to 1.2% of portfolios, the first rise since the October 2025 selloff, and the firm said institutions drove the entire increase, with the survey covering investors managing about $1.16 trillion. The same report said more respondents cited “good value” as a reason for owning crypto after the preceding decline.
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