Bitcoin Short Positions Rise Despite Price Surge to $95,600

The Bitcoin market rebounded last week, with prices rising over 12% to a peak of $95,600. Key developments in the derivative markets have been highlighted by blockchain analytics firm Glassnode.

Bitcoin Short Bets Rise Despite Price Rally

Derivative traders are showing skepticism as leveraged short positions increase despite the price rally:

Open Interest (OI) in Bitcoin perpetual swaps rose to 218,000 BTC, a 15.6% increase since early March.
This rise in OI is correlated with increased leverage, indicating potential for market volatility from liquidations.
The average funding rate has dropped to -0.023%, suggesting shorts dominate the market.
A negative funding rate means short traders pay long traders, reflecting bearish sentiment among traders.
The 7-day moving average of long-side funding premiums decreased to $88,000 per hour, reinforcing short bias.
Despite this, potential for a short squeeze exists, where sudden upward price movements could force shorts to cover their positions.

Bitcoin Price Overview

As of now, Bitcoin trades at $94,629, experiencing a 1.01% retracement from its recent peak. The market remains bullish, with gains of 1.02%, 11.12%, and 8.32% over the past day, week, and month, respectively. The market cap stands at $1.88 trillion, making Bitcoin the largest digital asset.