The Bitcoin (CRYPTO: BTC) rally to $82,000 is raising red flags that a short squeeze rather than organic buying may be the underlying fundamental driver.

Open Interest Jumped $10 Billion In A Month

According to a Wintermute report, open interest jumped from $48 billion to $58 billion in a month as Bitcoin started rising above $70,000. 

Short sellers piled in, got liquidated, and then bought back positions to cover. Funding is still predominantly short, meaning more squeeze could be coming.

The problem is that leverage, not spot demand, fueled this move. Spot buying confirms bull markets. Perpetual futures are driving this rally, and short covering does not reflect real conviction.

Spot… Read more on Benzinga