🚀 Shorts at maximum. Is the market setting a trap?
According to Santiment, $BTC funding rates are currently in deep negative — the strongest short positioning since August 2024.
Back then, the scenario was simple:
🔻 Mass shorting
⚡ Liquidations
🚀 +83% in 4 months
Now the situation is similar. But there is a nuance.
Negative funding is fuel.
But fuel does not ignite by itself.
For a full short squeeze, a trigger is needed:
- positive macro
- signals of Fed easing
- strong spot demand
- ETF inflow
Without this, the market can “squeeze down” for a long time, forcing longs to capitulate.
📌 What does this mean?
- The potential for a sharp rebound is high
- Volatility is guaranteed
- Risk management is critically important
When everyone is shorting, the upward movement becomes the most painful.
The question is only one:
who will be the first to not withstand — shorts or weak longs?
