Bitcoin Surges to $87,000 Amid Short Squeezes, Leverage Concerns Loom

Bitcoin's price surged to $87,000 on September 21, its highest level since January 29, driven by short squeezes and institutional buying. The surge in derivatives open interest, coupled with weak U.S. spot demand, raises concerns about the rally's sustainability.

The rally is attributed to a combination of technical corrections and increased capital inflows. However, mounting leverage in the derivatives market and structural weakness in U.S.-based demand are casting doubt on the rally's continuation.

Short squeezes have become a primary driver behind rising prices, with total cryptocurrency liquidations reaching $746.6 million over the past 24 hours, with short-position liquidations accounting for $647.9 million.