The cryptocurrency market started the week with a strong recovery, with the rise led by Bitcoin being particularly noteworthy. In a market marked by short-lived sharp movements, both the closing of positions in the derivatives market and the relative improvement in the macroeconomic outlook drove prices upwards.
Bitcoin gained approximately 4 percent in the last 24 hours, rising to $75,800. However, this level was not sustained, and the price quickly retreated to the $74,300 range. Similarly, Ethereum rose to $2,300, while XRP reached $1.52. Although the overall rise in the market indicates a renewed investor appetite, the dynamics behind the movement are being carefully examined.
Short positions liquidated
One of the most important triggers of this rise was the large-scale liquidation of short positions in the derivatives markets. A total of $609 million in liquidations occurred in the last 24 hours, with $485.6 million of this amount consisting of short positions. This situation created a classic “short squeeze” effect, causing prices to accelerate upwards. A short squeeze occurs when short (bearish) positions are forced to close as the price rises, accelerating buying and strengthening the upward trend. However, some analysts are cautious about the sustainability of such movements. Zeus Research analyst Dominick John notes that rallies driven by short squeezes are generally not long-lasting. According to him, without real and sustainable demand, such price movements tend to subside within a few days to a few weeks.
In market sentiment, a limited recovery is observed. The Crypto Fear and Greed Index rose to 28, moving from the “extreme fear” zone to the “fear” level. This change indicates a gradual improvement in investor psychology.
On the institutional side, the renewed increase in demand is noteworthy. According to analysts, strong fund inflows into spot Bitcoin ETFs played a significant role in this rise. Last week, a total net inflow of $767.3 million was recorded into spot Bitcoin ETFs in the US, marking the third consecutive weekly positive inflow. During the same period, spot Ethereum ETFs also saw inflows of $160.8 million.
Presto Research analyst Rick Maeda notes that Bitcoin's move towards $76,000 was largely supported by these fund flows. Furthermore, the continued purchase of cryptocurrencies for company balance sheets is another factor strengthening demand. CoinEx analyst Jeff Ko similarly states that the dip-buying strategy is strengthening, indicating a healthier market structure.
Macro Developments on the Agenda
On the macro front, there is a mixed but beginning to balance out picture. US stock markets started the week higher, while Asian markets also saw a positive trend. However, the renewed rise in oil prices continues to create uncertainty in the markets. Brent oil is approaching the $103 level, while WTI crude oil has risen above $96. In particular, developments in the Strait of Hormuz and concerns about global energy supply are among the factors that could directly affect investors' risk appetite. Analysts say that the crypto market is now driven not only by its internal dynamics but also by... He emphasizes that it is also closely related to macroeconomic indicators such as commodity prices, bond yields, and the dollar index. The direction of the markets in the coming period will largely depend on two main factors: whether corporate fund flows continue and how macroeconomic risks will unfold. Investors are closely monitoring ETF inflows, oil prices, and upcoming economic data. Among these, producer price index (PPI) data and the US Federal Reserve's interest rate decision could be decisive for the short-term direction of the market.
