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…
