A signal from the Bitcoin derivatives market points to the growing risk of a “short squeeze” that can stoke sharp rallies in the largest digital asset, according to cryptocurrency specialist K33 Research.
The metric is the funding rate for Bitcoin perpetual futures, which helps to gauge how bullish or bearish speculators are. K33 said the seven-day average annualized funding rate on Aug. 20 was the lowest since March 2023 — when US bank failures rattled investors — indicating a prevalence of downside wagers.
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Sidhartha Shukla
https://www.bloomberg.com/news/articles/2024-08-21/crowded-bitcoin-btc-derivatives-bets-spur-warning-of-short-squeeze
2024-08-21 05:09:00
