Bitcoin has rallied 3.9% over the past 24 hours, trading at $111,057 at the time of writing, after breaking through the short-term resistance zone at $108,000. This surge comes amid negative Funding Rates on Binance, signaling market disbelief in a potential recovery, as noted by analyst Darkfost on CryptoQuant Insights.
The negative Funding Rates indicate that short sellers remain dominant, which could ironically fuel a short squeeze. A price move higher may force liquidations of short positions, accelerating gains. Analyst Darkfost highlighted that a rally to $113,000 is already underway, with potential for an explosive push to $126,000 if bullish momentum persists.
Reduced inflows of BTC to Binance and moderate miners' profitability have alleviated selling pressure over the past two days, strengthening market dynamics. Analyst Axel Adler Jr. on X emphasized that after the liquidation flush on October 10th, short relief bounces are possible, but a sustainable recovery requires steady spot market inflows and increased Open Interest.
Simultaneously, speculation around a "bullish" U.S. Consumer Price Index (CPI) report is driving institutional flows into Bitcoin spot ETFs. Coinbase Institutional stated, "Institutional flows into spot ETFs represent the primary driver for Bitcoin’s upward price trajectory; leveraged derivative squeezes are secondary in 2025’s market structure."
Whale traders holding large short positions could be caught in a squeeze, as institutional investors view Bitcoin as a safe haven asset. Ricardo Salinas Pliego, Founder & Chairman of Grupo Salinas, remarked, "Bitcoin is the 'new real money' and will eclipse gold as the world’s financial anchor... The $1.5 million target reflects its intrinsic design and inflation protection, not speculation."
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