Bitcoin’s Fragile Recovery Sets Up a Big Short-Squeeze Risk

Bitcoin’s recovery above $75,000 has a credibility problem: the traders with the most leverage don’t believe in it.

Funding rates on perpetual futures, a gauge of whether leveraged traders are betting on higher or lower prices, have been negative for about 46 consecutive days. It’s one of the longest bearish stretches on record, matching the streak from November to December 2022, when the implosion of crypto exchange FTX rocked the industry.