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Analysis: Bitcoin's recent surge driven by spot demand, with rising potential short squeeze risk

Analysis: Bitcoin's recent surge driven by spot demand, with rising potential short squeeze risk

Odaily星球日报Odaily星球日报2026/01/16 11:52
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According to Odaily, on-chain data and derivatives data indicate that the recent rise in bitcoin prices is mainly driven by spot demand, while the risk of a short squeeze is increasing. Bitcoin has risen by about 10% since the beginning of the year, with its price remaining below $97,000. This increase is primarily driven by spot purchases rather than leveraged positions established through futures. Spot-driven rallies are generally considered healthier than those driven by leverage. The recent price movement from $90,000 to $97,000 has shifted over the past week from a leverage-dominated rally to one supported by spot buying. In addition, according to Glassnode data, the open interest in bitcoin-denominated futures stands at 678,000 BTC, which is comparable to the 679,000 BTC on January 8, indicating that the overall leverage in the system has remained largely unchanged. The perpetual futures funding rate is currently negative. (CoinDesk)

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