Bitcoin $BTC Shorts Are Maxed Out – Trap or Big Squeeze Coming?
Right now, Bitcoin funding rates on futures are deeply negative, according to Santiment. This is the strongest short positioning since August 2024.
Back then, heavy shorting led to massive liquidations and a huge +83% rally in just 4 months.
The setup looks similar today. Negative funding rates act like fuel for a short squeeze — when shorts get forced to buy back, price shoots up fast.
But fuel alone isn’t enough. A real squeeze needs a spark, like:
- Positive macro news
- Fed rate cut signals
- Strong spot buying
- Big ETF inflows
Without that trigger, the market can keep grinding lower for a while, shaking out weak long positions instead.
**Bottom line:**
- A sharp rebound is very possible
- Volatility will stay high
- Good risk management is a must
When almost everyone is betting against Bitcoin, any strong upward move hurts shorts the most. The big question now: who blinks first — over-leveraged shorts or weak hands holding longs?
