Analysis: Bitcoin's recent rise is driven by "healthy" spot demand, with increasing potential short squeeze risk

DeepFlowTech · 2026-01-15T11:56:41+00:00

The increase in Bitcoin prices is mainly driven by spot demand, which has risen about 10% since the beginning of the year and remains below $97,000. This upward movement is healthier compared to futures leverage-driven growth. Recently, the market has shifted from leverage dominance to spot support, with overall leverage remaining unchanged.

DeepFlowTech

2026-01-15 11:56:41

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Deep Tide TechFlow News, January 15 — According to CoinDesk, on-chain data and derivatives data indicate that the recent Bitcoin price increase is primarily driven by spot demand, while the risk of liquidation has increased. Since the beginning of the year, Bitcoin has risen by approximately 10%, with prices remaining below $97,000. This rally is mainly driven by spot purchases rather than leveraged positions established through futures. A rise driven by spot demand is generally healthier than one driven by leverage. The recent price movement from $90,000 to $97,000 has shifted over the past week from a leverage-led rally to one supported by spot buying. Additionally, according to Glassnode data, open interest in Bitcoin-denominated futures stands at 678,000 BTC, comparable to 679,000 BTC on January 8, indicating that overall system leverage remains relatively stable. The perpetual futures funding rate is currently negative.

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