Bitcoin Shorts Build $1.4 Billion Risk as $80,000 Squeeze Threat Emerges

Bitcoin continues to trade above $76,000, holding distance from its yearly low near $60,500, but strong resistance remains near $79,000–$80,000. Market data shows roughly $1.4 billion in leveraged short positions have formed around $80,000 within the past 48 hours, creating a potential liquidation trigger if price breaks higher.

Despite rejection near $79,500, sustained price stability above key support suggests the possibility of a bear trap, where short sellers could be forced to close positions if momentum shifts upward.

Federal Reserve Policy and Inflation Expectations Influence Market Direction

Bitcoin perpetual futures funding rates have remained negative for nearly two weeks, reflecting growing bearish sentiment even as prices previously climbed from $72,000 to $78,000 earlier this month. Options market data shows put options trading at an 11% premium over calls, indicating professional traders remain cautious about downside risk.

Macroeconomic signals are also shifting. Futures markets now reflect about 20% probability of interest rate cuts by September, while the 5-year U.S. Treasury yield near 3.95% has become less attractive to investors.

Meanwhile, spot demand continues to support price levels. Strategy purchased $255 million worth of Bitcoin between April 20 and April 26, while U.S.-listed Bitcoin ETFs recorded $824 million in net inflows, reinforcing bullish momentum that could drive a breakout above $80,000 if buying pressure persists.