- Bitcoin price surged 3.8% as U.S. stock shorts hit an all-time high, fueling speculation of an imminent short squeeze.
- Analysts highlight soaring put option volumes and liquidated BTC shorts as key indicators of a possible price breakout.
- While the U.S. holds 198,000 BTC, uncertainty around future acquisitions keeps traders on edge.
Bitcoin price has witnessed a 3.8% bounce within the last 24 hours, climbing back from recent volatility. This uptick comes against a backdrop of unprecedented short interest in U.S. stocks, which have hit an all-time high, fueling speculation that a short squeeze could be on the horizon for equities and digital assets.
Top Analyst Hints Short Squeeze In Bound for Stock Market and Bitcoin Price
A prominent crypto analyst, CryptoJack (@cryptojack), has sparked intense speculation in financial markets with a post on X today, claiming that U.S. stock market short positions have reached an all-time high (ATH).
According to CryptoJack, the U.S. total option put volumes, a 5-day moving average from 2021 to 2025, sharply rose, indicating unprecedented bearish sentiment among investors.
His warning suggests a potential for a massive short squeeze in the coming days or weeks. With market dynamics shifting and sentiment teetering between caution and optimism, analysts are dissecting what this could mean for Bitcoin’s next move.
Bitcoin Price Analysis: Is BTC Bottom In?
The bounce in Bitcoin price on March 11, though modest, has reignited discussions about its resilience amid a broader risk-off sentiment in traditional markets. Data from CoinGecko shows Bitcoin trading around $81,634 as of New York pre-market trading hours, recovering from a dip earlier this week.
Adding fuel to the fire, the U.S. government’s strategic Bitcoin reserve, established via an executive order from President Trump on March 7, has stirred the pot. While the reserve holds over 198,000 BTC valued at $17 billion, the lack of immediate plans for additional purchases disappointed some investors, contributing to last week’s sell-off.
Yet, today’s bounce suggests a possible shift in sentiment, coinciding with new information revealing that the U.S. commerce and treasury were instructed to “look into ways” to acquire BTC for strategic reserves.
Analysts like Steven Lubka of Swan Bitcoin call it “good news, but not what the market wanted short-term.”
Market observers suggest this confluence of events could set the stage for a short squeeze, a scenario where rising prices force short sellers to buy back assets to cover their positions, amplifying upward momentum.
Data from Coinglass echoes this sentiment, with BTC’s total liquidations chart showing $12.35 million in liquidated shorts driving Bitcoin’s recent gains.
Final Thought
As U.S. stock shorts pile up and Bitcoin flexes its volatility, the question remains: Is this the calm before a squeeze-fueled storm? Traders are watching closely, and the next few days could prove pivotal.
