Bitcoin (BTC) reversed Monday’s decline to three-month lows under $25,000 during Asian trading hours, jumping back to around $26,000 as open interest on Binance, Bybit, OKX and Deribit fell to $4.8 billion from $5.05 billion. The decline in open interest suggests short traders were abandoning their bearish bets in what’s known as a short squeeze. The price recovery may remain capped due to a lack of immediate bullish catalysts. The bitcoin spot ETF optimism has faded, with observers shifting focus to the impending liquidation of FTX’s altcoin holdings.
Altcoin Crash May Be on the Cards
