Bitcoin Up 2.4% on $2B USDT Inflows & Short Squeezes
Bitcoin has rebounded to around $119,171, up 2.4%, driven by over $2 billion in USDT stablecoin inflows to major derivatives exchanges and strong spot-side bid stacking between $118,000 and $120,300. CryptoQuant reports rising open interest and a positive Coinbase Premium Index, underscoring institutional demand and leveraged long positions. Glassnode data also shows a $90 million short squeeze at $118,139 and 196,000 BTC accumulated near these levels, reflecting mounting bullish pressure. Meanwhile, $800 million in USDT outflows from spot exchanges point to strategic risk-off rotation rather than broad de-risking. With the U.S. House vote on the GENIUS Act approaching, regulatory clarity could further fuel a breakout to new all-time highs. Traders should watch stablecoin flows, derivatives metrics, bid stacking and regulatory developments for signals of the next rally.
Bullish
The substantial inflows of over $2 billion in USDT stablecoins into derivatives exchanges and the resulting rise in open interest, combined with strong spot-side bid stacking and a $90 million short squeeze, indicate robust bullish momentum for Bitcoin. Spot-side accumulation of 196,000 BTC further supports this view. Although $800 million in USDT outflows from spot exchanges may cause short-term consolidation, they represent strategic repositioning rather than wholesale sell-off. The upcoming GENIUS Act vote in the U.S. House adds a potential regulatory catalyst, which could accelerate a breakout to new all-time highs. Overall, these factors suggest a bullish market outlook in both the short and long term.