Bitcoin short liquidations reached their highest level in nearly a month as the price surged to $64,550 on Monday, driven by a short squeeze on derivatives markets, according to onchain analytics platform CryptoQuant. The move followed diverging funding rates between exchanges and concerns over sustained price growth due to weak spot demand and ETF outflows.
Bitcoin short liquidations totaled 637 BTC on Monday, the highest single-day amount since July 21, as traders on major exchanges including Binance, Bybit, OKX, Deribit, and HTX faced forced exits. The price surge to a one-week high was accompanied by a brief spike in funding rates on HTX, which reached 0.05%, reflecting heightened volatility in derivatives markets.
CryptoQuant noted that funding rates between exchanges had diverged, with rates resetting from 0.006% to 0.003% over 24 hours, indicating shifting dynamics in leveraged positions. The platform also highlighted $267.2 million in net ETF outflows over the prior week, which analysts said could weigh on spot demand despite the short squeeze.
The analytics firm warned that a break below $60,000 alongside rising exchange inflows could weaken the price structure, increasing downside risk toward $50,000. While selling pressure has eased, sustained growth remains contingent on renewed demand, it added.
Uncertainties persist over the longevity of Bitcoin’s recent rally, with weak spot demand and ETF outflows cited as potential headwinds. The absence of inflows into US spot Bitcoin ETFs has raised questions about the ability of price gains to hold without broader market participation.
Written by Oliver Grant
Markets Desk
