Bitcoin exchange order-book liquidity is creating the conditions for a giant short squeeze event as traders bet against BTC price upside.

Bitcoin due 'massive short squeeze' as BTC dominance bounces to 62%

XRP price retreated for the third consecutive day, approaching a local bear 
market as the crypto market sell-off intensified. Ripple (XRP) dropped and 
retested the important support level at $3, its lowest level in nearly a week. 
It has dropped…

Rare pattern reveals why the XRP price is crashing today

Data shows the Bitcoin Open Interest shot up to a new all-time high (ATH) even 
as the cryptocurrency&#8217;s price saw a retrace to $115,000. Bitcoin Open Interest 
Has Gone Against The Price Trend As explained by an analyst in a CryptoQuant 
Quicktake post, the Bitcoin Open Interest has witnessed a sharp surge 
alongside the latest decline in the price. The &#8220;Open Interest&#8221; here refers to 
an indicator that measures the total amount of positions related to BTC (in 
USD) that are currently open on all centralized derivatives exchanges. Related 
Reading: This Bitcoin Metric Often Flags Turning Points—What’s It Saying Now? 
When the value of this metric rises, it means the investors are opening up 
fresh positions on the market. Generally, the total leverage in the sector 
goes up when new positions appear, so this kind of trend can lead to more 
volatility for the cryptocurrency. On the other hand, the indicator going down 
suggests the holders are either closing up positions of their own volition or 
getting liquidated by their platform. Whatever the case be, the asset&#8217;s price 
can behave in a more stable manner after such a trend. Now, here is a chart 
that shows how the value of the Bitcoin Open Interest has changed over the 
last month: As displayed in the above graph, the Bitcoin Open Interest rose to 
a high value earlier in the month when the asset&#8217;s rally to the new all-time 
high (ATH) took place. This wasn&#8217;t anything unusual, as speculation tends to 
flood in during periods of exciting price action. As BTC retraced from its 
peak and settled into a phase of boring consolidation, the metric&#8217;s value 
calmed down a bit. Now, the coin has finally diverged from this sideways 
movement, showing a downwards move. Interestingly, the Open Interest has 
rocketed up alongside this price plunge and set a new record around $44.5 
billion. From the chart, it&#8217;s visible that price declines usually accompany 
drawdowns in the indicator, as longs find liquidation. &#8220;It&#8217;s unusual for BTC 
price direction and open interest to move in a negative correlation,&#8221; notes 
the quant. Related Reading: Crypto Liquidations Near $1 Billion As XRP, 
Dogecoin Crash 10% The spike in the metric could suggest some longs have 
decided to double down on their bets and some speculators have jumped in to 
get their shorts in, expecting the downtrend to continue. As mentioned before, 
an increase in the metric can amplify price volatility. This happens because 
the chances of a mass liquidation event taking place go up during such 
conditions. It now remains to be seen how this Open Interest increase would 
unwind this time around and whether a long squeeze or a short one would take 
place. BTC Price Bitcoin saw a brief dip under $115,000 earlier, but its price 
has since retraced a bit as it&#8217;s back at $116,000. Featured image from Dall-E, 
CryptoQuant.com, chart from TradingView.com

Bitcoin Open Interest Sets New Record As Price Plunges To $115,000

Dragonfly Capital’s early investment in Tornado Cash could expose the firm to 
potential legal action from the DOJ.

Dragonfly responds to DOJ scrutiny over Tornado Cash investment, vows to ‘vigorously defend’ itself

Bitcoin is at risk of losing the $115,000 support, raising the chance that the 
recently started altcoin season could abruptly end.

Price predictions 7/25: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, HYPE, XLM, SUI

More than 101,000 bitcoin tied to early addresses created between 2009 and 
2017 were shifted in the first seven months of 2025, with a massive July 
breakout accounting for over 80% of that total. Old Wallets, Big Moves So- 
called “sleeping bitcoins” refer to coins held in wallets that have seen no 
spending activity for years—sometimes […]