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Analysis: The recent rise in Bitcoins has been driven by physical demand, and the risk of short squeezes is increasing.
Svmuu News: On-chain and derivatives data indicate that the rise in Bitcoin’s price is primarily driven by spot demand, while the risk of a short squeeze is increasing. Bitcoin The price has risen by approximately 10% year-to-date and remains below $97,000. This rally is primarily driven by spot buying rather than leveraged positions established through futures.Spot-driven rallies are typically healthier than leverage-driven ones. 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.Additionally, according to Glassnode data, open interest in futures denominated in Bitcoin stands at 678,000 BTC, comparable to the 679,000 BTC recorded on January 8, indicating that overall leverage in the system has remained largely unchanged. The funding rate for perpetual futures is currently negative. (CoinDesk)
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