BTC rose by 6.33% to hit a one-month high of $93,141, at press time. Over the same period, investors have shown extreme bullishness. Notably, at the time of writing, the Put/Call Open interest was at 0.59.
Additionally, options interest surged from $28.5 billion to $30.7 billion, a $2.2 billion increase within a day. This marks the highest level since March, aligning with the rise in price and Futures open interest. Meanwhile, Futures Open Interest climbed from $36.2 billion to $38.6 billion, gaining $2.4 billion in less than 36 hours.
Despite Bitcoin’s strong surge over the past day, Binance investors remain skeptical about its sustainability. Currently, Binance Funding Rates have turned negative, standing at -0.006, despite the upward price momentum. These historical instances hint at the potential for significant price movements under similar conditions.
This shows that, when the Funding Rate on Binance dips to such levels, prices tend to rise as investors shorting the market suffer from a short squeeze. As market prices rise, shorts rush to close their positions, thus adding to buy pressure, which eventually leads to a rally.
Short-term holders (STHs) are now back in profit, with their realized price at $91K, while BTC trades above $93K. The STH SOPR has exceeded 1, indicating profitability and lowering the chances of a panic sell-off.