Summary
- Glassnode analyzed that the Bitcoin (BTC) rally was driven by strong buying pressure in the spot market and Exchange-Traded Fund (ETF).
- The derivatives market reacted late, with a 'short squeeze' occurring due to the liquidation of short positions, leading to a sharp decline in open interest.
- The report stated that the funding rates and open interest in the derivatives market remain at a neutral level, and the increasing demand for call options in the options market indicates a strengthening risk appetite.
The recent rally that saw Bitcoin (BTC) surge to $104,000 was driven by strong buying pressure in the spot and Exchange-Traded Fund (ETF) markets.
On the 15th (local time), the cryptocurrency data analysis firm Glassnode reported in its weekly report that "the recent rise in Bitcoin is led by the spot market, with the derivatives market following behind." According to the report, clear net buying pressure was observed on major exchanges like Coinbase, and ETF inflows also acted as a key driver of the rally. In contrast, the derivatives market showed a delayed response to the upward trend.
Particularly in this upward phase, a 'short squeeze' occurred due to the liquidation of short positions, resulting in a rapid decline in Open Interest (OI) over a short period. Glassnode assessed that "leverage-based traders lagged behind the market trend, and the overall funding rates and open interest in the derivatives market remain at a neutral level, not yet overheated."
In the options market, demand for call options is increasing, indicating a gradual revival of risk appetite. The report added, "(Although interest in the derivatives market has increased) the demand centered on the spot market still leads this rally."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
