I view this rally through three layers:

Layer 1 — Strong Positive

BTC breakout + Risk-On + Short squeeze

This is the primary fuel driving the current rally.

Layer 2 — Not Yet Confirmed

ETF demand has not yet translated into massive institutional inflows for this rally. Reports indicate that the net inflow for US spot BTC ETFs for the week ending September 19 was only around $6.2 million.

Yahoo Finance

Therefore, we cannot yet claim that the rise is driven by a massive influx of institutional capital.

Layer 3 — Risk

A short squeeze can act as a one-time fuel source.

Once short positions are liquidated, the more critical question is whether real spot demand, sustained Open Interest (OI), and trading volume can maintain the momentum for the next leg up.