Bitcoin climbed to $75,653 late Monday before retreating, as $609M in liquidations accelerated upward momentum, according to Coinglass data. The move signals renewed volatility driven by derivatives positioning rather than purely organic demand.
The largest cryptocurrency rose roughly 4% over 24 hours before easing to $74,300, while Ethereum gained 3.28% to $2,315 and XRP added 5% to $1.54, according to market data. Short positions accounted for $485.6M of total liquidations, indicating a squeeze-driven advance across major tokens.
Is The Bitcoin Short Squeeze Sustainable Without Demand?
The latest rally reflects a familiar pattern in crypto markets. In 2021, similar liquidation cascades pushed Bitcoin sharply higher, though many moves reversed once leverage reset and spot demand failed to follow. Current sentiment remains cautious, with the Crypto Fear & Greed Index at 28, still in “fear” territory despite improving from “extreme fear.” Analysts pointed to a mix of flows and macro stabilization behind the move.
“Squeeze-driven moves are typically short-lived without sustained real demand,” said Dominick John, analyst at Zeus Research.
Yet others highlighted institutional support, with $767.3M in net inflows into US spot Bitcoin ETFs and $160.8M into Ether ETFs last week, according to SoSoValue.
Broader macro conditions also contributed. US equities rose Monday, while oil prices climbed above $100 per barrel amid ongoing tensions in the Strait of Hormuz, reinforcing Bitcoin’s growing correlation with global risk assets. Analysts noted that easing geopolitical stress earlier in the session helped lift high-beta assets, including crypto. Still, durability remains uncertain.
“Institutional spot demand also appears to have returned,” said Jeff Ko, chief analyst at CoinEx, pointing to consistent dip-buying and ETF inflows.
Traders are now watching ETF flow continuity, oil price direction, and the Federal Reserve’s March 18 rate decision as the next catalysts for Bitcoin’s trajectory.
