Bitcoin shows signs of a potential short squeeze as it aims to regain the $64K mark post-military actions. Funding rates drop to -6%, signaling strong shor
Market Performance and Short Squeeze
Bitcoin is showing signs of a potential short squeeze as it aims to regain the $64,000 mark after dipping to as low as $63,000 following military actions by the U.S. and Israel against Iran.
Funding Rates and Market Sentiment
Perpetual futures funding rates have dropped to -6%, marking the second-lowest level in three months. This deep negative rate signifies strong short positioning and bearish sentiment, with traders willing to pay a premium for downside bets.
Open Interest and Participation
Coin margined open interest has increased from 668,000 BTC to 687,000 BTC over the past 24 hours. This growth in open interest suggests an increasing number of participants in the market, with many traders betting on further price declines.
Liquidations and Forced Selling
Over the last 24 hours, more than $500 million in crypto positions have been liquidated, predominantly long positions worth over $420 million. This indicates a significant scale of forced selling as prices fell, reflecting heightened market volatility and risk aversion among traders.
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