BTC surged 3% to $64,550 as short liquidations hit a one-month high amid divergent exchange funding rates.
Bitcoin rallied 3% to $64,550 on Monday, marking its highest level in a week, driven by a short squeeze in low-liquidity markets. The move followed a divergence in funding rates across major exchanges, where short positions dominated platforms like Binance and Bybit while HTX saw a brief spike to 0.05% funding rates.
Before the rebound, BTC traded near $62,750, with funding rate imbalances fueling the squeeze. Total short liquidations reached 637 BTC, the largest single-day tally since July 21. Analysts described the rally as a ‘low-volume liquidity trap,’ noting funding rates are already declining again as traders increase short exposure.
The event highlights ongoing volatility in crypto derivatives markets, with potential for further short squeezes if liquidity remains thin.