Currently, Bitcoin funding is negative and open interest has reached an all-time high. This indicates a decrease in expectations for further price growth after a sharp rise in the futures market. High open interest can indicate potential volatility.

Short bets are concentrated on medium exchanges such as OKX, Bybit and Huobi, which can lead to a short squeeze. After the confirmation of the election results, there was a large influx of spot purchases, which caused a short squeeze and a jump in prices.

Price gains have slowed in the coming days, but a new influx of spot buying could trigger a short squeeze again. Thus, the liquidity of short positions in the futures market becomes fuel for price spikes in the bull market.