Short squeeze propels Bitcoin past $100,000 with funding rates growing

Bitcoin's leverage-driven rally stands on shaky legs with funding rates surpassing sustainable thresholds.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

With Bitcoin surging past the $100,000 mark for the first time since February, the rapid ascent was fueled not just by excitement, but by an unprecedented rise in derivatives activity. Open interest skyrocketed, and perpetual funding rates spiked, creating a potent mix for potential market volatility. Most notably, the largest short liquidation event since 2024 added unexpected momentum. However, there's a looming concern: Could this precarious reliance on leverage set the stage for... what exactly? Uncover the key risks that might redefine Bitcoin's path.