Bitcoin's Price Rally Leads to $230 Million in Liquidated Bearish Futures Contracts and Increase in Open Interest

The recent surge in Bitcoin's price has resulted in the liquidation of $230 million worth of bearish futures contracts, while the open interest in BTC futures has increased from $13.1 billion to $14 billion. The increase in futures open interest suggests that demand for new leveraged positions outpaced forced closures, indicating a "gamma squeeze" caused by arbitrage desks being forced to hedge short positions. There are several theories circulating on social media, including Changpeng Zhao using BNB as collateral for margin on Venus Protocol to shore up the price of BNB token, but these speculations cannot be confirmed. Despite ongoing speculation regarding the approval of a spot Bitcoin ETF, there is enough evidence to support a healthy influx of funds, justifying a rally beyond the $35,000 mark.