BlockBeats news, on July 22, CryptoQuant analyst Sunny Mom stated that Bitcoin rose from approximately $64,000 to $66,000 within two days, but this rally was primarily driven by short squeezes and leveraged funding rather than a clear return of spot demand. From July 18 to 19, funding rates turned negative temporarily, and the subsequent short squeeze spurred price recovery; meanwhile, open interest increased from around $21.2 billion to a record high of $23 billion, indicating continuous inflow of new leveraged positions.
Data shows that Bitcoin spot trading volume has remained in a "cooling" state since April and has not yet shown a significant rebound; futures trading volume is at a "neutral" level, with no notable increase. The net flow of stablecoins on trading platforms is negative, but the total market capitalization of stablecoins has not declined significantly, indicating that more funds are still on the sidelines.
U.S. spot Bitcoin ETFs have recorded inflows for a second consecutive week, with net inflows of approximately $271 million on July 20, including $116.5 million into IBIT, indicating that some institutional capital is returning, though not yet enough to significantly boost overall spot trading volume.
Sunny Mom believes that this rally was initiated by a short squeeze and sustained by leveraged capital, while ETF funds are slowly returning. The market is not yet overheated, but the foundation for the rally remains fragile; if momentum weakens, leveraged positions could be rapidly unwound, leading to a significant market correction.