What Crypto Derivatives Say About Bitcoin’s Record Price

In brief

  • Bitcoin surged more than 6% on Thursday, breaching $117,500 amid over $1 billion in liquidations, mostly from short positions.
  • Analysts say the rally was driven by short-covering in derivatives, with spot markets showing weak underlying demand.
  • Despite the move, funding rates remain subdued and order books ask-heavy, suggesting momentum may fade without new inflows.

Bitcoin is on the rise. 

But is it sustainable, and how are sophisticated traders looking to protect recent gains following Thursday’s more than 6% pop above $117,500?

Cracks are beginning to form in the derivatives market, according to analysts Decrypt spoke to on Thursday, which came amid a drop of more than $1.58 billion in open interest.

More than $1 billion

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