**[Analyst: Record Bitcoin Short Squeeze and Leverage Reset May Signal Bull Market Restart]** BlockBeats News, August 26 – Analysts from K33 and Bitwise stated that the record-breaking Bitcoin short squeeze, leverage reset, and macro catalysts brought by U.S. Treasury Secretary Besant may indicate that the market is shifting toward a broader bull market reset. Bitcoin rose 23% over the past week, marking its strongest weekly performance since the post-2024 U.S. election rally. Spot and perpetual contract trading volumes increased by 188%, CME trading volume surged by 152%, and Bitcoin investment products saw a net inflow of 31,740 BTC. K33 Research Director Vetle Lunde pointed out that on August 19, $1.37 billion worth of Bitcoin shorts were liquidated, nearly double the previous single-day record of $757 million set in July 2021. On August 21, another $739 million in shorts were liquidated. Subsequently, the nominal open interest in perpetual contracts dropped to 284,000 BTC, the lowest since May, and funding rates returned to neutral. Historically, large-scale short squeezes often occur during Bitcoin bottoming phases. Other indicators have also shifted simultaneously. The six-month 25 Delta options skew for Bitcoin turned negative for the first time since September 2025, indicating that call options are now priced higher than put options, ending an 11-month period where the market paid a premium for downside protection. Bitcoin also reclaimed its 50-day, 100-day, 200-day, and 200-week moving averages within just four days, faster than in any previous cycle. Historically, such recoveries within 45 days have only occurred in October 2015, April 2020, and October 2023, all near the start of cyclical bull markets. Besant's push to increase long-term U.S. Treasury repurchases is also seen as an additional catalyst. The 90-day correlation between Bitcoin and gold has risen to 0.52, the highest since October 2020, while its correlation with the Nasdaq has dropped to 0.38, a one-year low. Bitwise Chief Investment Officer Matt Hougan believes that as the global financial system increasingly becomes a tool for geopolitical purposes, a neutral monetary network that is independent of any single nation's banking system and globally transferable will become more valuable. [Original Link]