Funding rates reportedly dropped as low as -1.1%, while around 5.57M short positions were liquidated. As shorts were forced to buy back, that liquidation pressure itself helped accelerate the price.
But once the squeeze runs out of fuel, the key question becomes: where is the sustained spot demand?
The tokenomics also deserve attention. Under the rework, total supply is expected to reach 42.6B tokens over 60 months, while circulating supply increases by roughly 2.22% per month.
That means a stronger pump today could potentially create greater supply-driven sell pressure later.
And the much-discussed 70M-token burn represents only around 0.2% of total supply—far too small on its own to justify a sustainable 2× valuation increase.
Bottom line: Short squeezes can create explosive moves, but they don't automatically equal fundamental demand. Watch spot volume, funding rates, open interest, and supply growth before assuming the rally has legs
$BTC #BlockstreamRefusesToPayRansomToLiquidAttacker #USToSanctionBigBankMonday #TrumpDeclinesSaudiRequestToStrikeHouthis #CryptoSectorsFallSecondDay #BitcoinGoldenCrossConfirms 😉