Bitcoin Bull-Run Alert: Historic Short Squeeze Triggers Bull-Market Reset Bets

Bitcoin's historic short squeeze and a macro catalyst sparked by U.S. Treasury Secretary Scott Bessent may signal a broader bull-market reset, analysts say.

The cryptocurrency gained 23% over the past week, its strongest one-week return since November 2024, as activity rebounded across crypto markets.

Spot and perpetual futures volumes jumped 188%, while CME volumes rose 152%, and its annualized bitcoin futures basis climbed to 11.1%, the highest level since January 2025.

K33 Head of Research Vetle Lunde noted that major short squeezes have historically occurred during bitcoin bottoming phases as bearish positioning becomes crowded and sell-side exhaustion reaches an extreme.

Lunde also pointed out that the six-month 25-delta options skew turned negative for the first time since September 2025, meaning calls became more expensive than puts following 11 consecutive months in which traders paid a premium for downside protection.