Bitcoin holds above $75K as ETF inflows rise and squeeze risk grows

Headline: Bitcoin holds $75k as funding stays negative 6 weeks; Bloomberg flags short‑squeeze risk

Bitcoin is back above $75,000 and holding. But derivatives still lean short, raising squeeze risk, per Bloomberg.

- Perpetual funding has been negative for ~1.5 months. Shorts pay to stay in, even as spot grinds up Bloomberg.
- Price is up ~14% from April lows, aided by US spot ETF inflows and fresh MicroStrategy buys Bloomberg.
- US spot Bitcoin ETFs saw about $332m net inflows so far this week, with ~$26m on Thursday. By 8 a.m. London Friday, price traded near $75k Bloomberg.
- This is among the longest bearish funding streaks since late‑2022 post‑FTX Bloomberg.

“Traders are actively building short positions and betting against a breakout,” said K33’s Vetle Lunde, which “creates conditions where a short squeeze becomes more likely if upward momentum persists” Bloomberg.

Spot liquidity looks thin. A sharp move can cascade through derivatives and force shorts to cover, Bloomberg notes source.

Catalysts stack up. MicroStrategy bought $2.6b in two weeks; a steady bid, per FalconX. Charles Schwab plans spot crypto trading this year and floated up to 8.8% portfolio allocation to Bitcoin clients Bloomberg.

ETF demand flipped positive. Over the past week, US Bitcoin ETFs drew >$800m net, adding squeeze pressure as shorts sit in losing trades Bloomberg.

Bears still hedge. Deribit shows put interest around $60k and $50k strikes. Bloomberg calls it a “soft recovery,” with downside protection in demand Bloomberg.

Kaiko’s Laurens Fraussen sees upside risk: a break above $76k could extend toward $85k and “catch some people off guard” Bloomberg.