Posted 12/4/2023, 5:30:13 PM
Bitcoin Price Rallies 14.5% to 20-Month High, But Minimal Futures Liquidations Hint Spot Buying Driving Rally
- Bitcoin price recently rallied 14.5% to a 20-month high, but liquidations of BTC futures shorts only totaled $200M or 1% of outstanding contracts
- Bitcoin futures aggregate open interest stands at $20B, while spot trading volume over the past week was $190B, dwarfing the futures liquidations
- Funding rates and futures contract premiums show no signs of excessive optimism or leverage among longs to indicate a squeeze is imminent
- Net outflows from exchanges over the past week totaled 8,275 BTC, suggesting spot accumulation is driving the rally
- With minimal futures liquidations despite the price surge, bears likely employed conservative leverage or diligently managed their positions