An analysis has emerged suggesting that Monday's Bitcoin surge was not driven by actual demand. Last week, after a decline, the price jumped about 5% to surpass $69,000, but this was caused by forced liquidations of short positions, similar to stock short selling. Traders who borrowed funds to bet on a decline hurried to close their positions as prices rose, which in turn pushed the price even higher. This happened because of a macroeconomic environment deterioration leading to a restructuring of capital, and recent outflows or reversals in spot Bitcoin ETF funds also played a role.

Data makes the situation clearer. An open interest increase of 6% while the price only rose 3.8% indicates leverage is supporting the market. There is a large cluster of liquidations between $65,000 and $70,000, and breaking through $70,000 could trigger an additional liquidation of about $90 million. Just as stock shorts are forcibly liquidated, leverage positions in the crypto market are also under extreme tension. Analysts agree that without backing from spot buying, this rebound could end quickly.