Bitcoin Rally Driven by Short Covering, Not New Demand

Coinotag

Release Time:12/15/2025 11:21:34

BTC

$86,977.20-0.78%

Bitcoin’s 15% rally from November 21 to December 9 was fueled by short covering, not new bullish demand, per Velo and CoinGecko derivatives data. Open interest dropped during the move, while volume delta remained flat, showing limited new buying. Deribit’s 25-delta options skew improved from -11% to -5%, hinting at a potential bottom. Over $1.80 billion in short positions face liquidation if Bitcoin clears $91,300, per CoinGlass. A short squeeze could aid recovery, but sustained gains need stronger spot demand. Traders using event-driven trading should assess the risk-to-reward ratio before entering longs.

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