Lately, leverage has quietly reasserted itself as Bitcoin’s main driver [BTC] momentum. In fact, the recent breakout caused an aggressive short squeeze, forcing traders to unwind bearish positions extensively.
According to Glass junction this was the largest short liquidation in the top 500 cryptocurrencies since October 10, 2025.
On the charts, the liquidation spikes closely matched Bitcoin’s push towards its local highs.
Source: Glassnode
Traders wiped out millions of short positions in a short period of time, and forced buybacks drove Bitcoin’s price higher, reinforcing the upward pressure. This behavior has been increasing since the end of 2025, but the intensity is increasing Bitcoin elevated levels maintained rather than retreating.
If current liquidations continue, Bitcoin could rise to the $100,000-$105,000 zone on momentum alone.
However, if funding cools and Open Interest resets, the price could consolidate. Previous bottlenecks have shown that sustainability often depends on short-term demand replacing leverage.
OG’s withdrawal of supply signals a shift in market control
However, that’s not all. OG Bitcoin holders are no longer distributing at the pace seen earlier in this cycle. STXO data from coins that had been inactive for more than five years showed a clear slowdown in holders’ long-term spending.
Facts from CryptoQuant confirmed that OGs were very active until 2024, using institutional demand and government purchases as ideal exit liquidity.
However, that behavior has since changed. Earlier in the cycle, OG spending peaked at almost 3,800 BTC. It then cooled to 3,200 BTC, followed by 2,200 BTC.
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In the short term, OG’s lighter selling reduces supply overhead and supports price stability. On the contrary, in the long term this behavior shows conviction.
Historically, OG constraint aligns with accumulation phases and not with late-cycle distribution.
Whales hedge as retail commits: who will break first?
The graph showed a clear difference. First, whales relax after long exposure. Then they turn into shorts. This shift appeared to be intentional.
When price approaches an elevated level, momentum usually fades. At the same time, you can quietly rebuild leverage. The result is that the risk tends downward.
In this particular case, the whales responded early because they saw crowded positions and late-cycle behavior. Furthermore, OG Bitcoin holders are no longer aggressively distributing.
This isolates organic selling pressure, while leverage remains the main driver of the market.
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Retailers are going the other way. They chase upstairs. They respond to price, not structure. Consequently, they add longs as volatility increases.
For example, on-chain data from Alphractal showed that whales closed longs and flipped shorts as Bitcoin approached $69,000. Retail traders did the opposite and added long positions. Shortly afterwards, Bitcoin corrected by almost 20%, falling from $69,000 to $56,000 before stabilizing.
Such an arrangement implies a possible shakeout or cooling phase. If leverage decreases, the price will likely recover before sustainable continuation occurs.
All in all, the structure of Bitcoin is clear. Leverage, not spot demand, can drive momentum. Short liquidations drove the price higher, while OG sales slowed and whales became defensive. This has not only reduced supply, but also increased vulnerability.
Therefore, the upward trend remains fragile. Sustainable profits require short-term demand to replace leverage.
If that doesn’t happen, there is a volatility risk, leaving any further extension vulnerable to a corrective reset.
Final thoughts
- Leverage is now driving Bitcoin’s momentum, with short liquidations driving the price higher while spot market demand has become secondary.
- Smart money may be turning cautious as whales hedge and OG holders slow sales.