Bitcoin Futures Drop $7.4 Billion, Short Squeeze Expected

Bitcoin’s price has cooled off after a historic high of over $100,000, with open interest and funding rates providing insights into the market correction. Open interest data reveals a significant drop of over $7.4 billion in futures contracts over the past week, indicating strategic position closures or liquidations by traders. Despite this price dip, long-term bullish sentiment persists. The positive funding rate suggests that while short positions have been liquidated, most traders remain long-biased, holding onto their positions and waiting for a potential rebound.