Analyst: This rally is primarily driven by forced liquidation of short positions, not by new spot demand.

According to on-chain analyst Axel Adler Jr. (@AxelAdlerJr), Bitcoin triggered a classic short squeeze within 24 hours, surging rapidly from $74,000 to $78,000 and liquidating approximately $526 million worth of short positions during this period—of which a single liquidation event at 13:00 UTC amounted to $357 million. Adler Jr. noted that this rally was primarily driven by forced short liquidations rather than new spot demand, casting doubt on the sustainability of the near-term accelerated price rise. Currently, around $8 billion in long positions have accumulated above $77,000 across major exchanges; whether sufficient spot demand exists to absorb these positions remains a critical variable.