BlockBeats News, July 22nd, CryptoQuant analyst Sunny Mom stated in a post that Bitcoin rose from around $64,000 to $66,000 within two days. However, this round of increase was mainly driven by short squeezing and leveraged funds, rather than a significant return of spot demand. On July 18th to 19th, the funding rate briefly turned negative, and the squeezing of short positions led to a price rebound. At the same time, the open interest of contracts increased from around $21.2 billion to a record high of $23 billion, indicating a continuous influx of new leveraged positions.

Data shows that Bitcoin's spot trading volume has been in a "cooling" state since April and has not significantly rebounded yet. The futures trading volume is at a "neutral" level with no significant surge. The net flow of stablecoins on exchanges is negative, but the total market capitalization of stablecoins has not decreased significantly, indicating that more funds are still on the sidelines.

The U.S. Bitcoin spot ETF has seen inflows for the second consecutive week. On July 20th, a net inflow of about $271 million was recorded, with IBIT receiving $116.5 million, reflecting some institutional funds returning. However, the scale is not yet sufficient to drive a noticeable warming of overall spot trading volume.

Sunny Mom believes that this round of increase was initiated by short squeezing and sustained by leveraged funds, while ETF funds are slowly returning. The current market is not yet overheated, but the foundation of the rise is still unstable. If the momentum weakens, leveraged positions may be quickly unwound, leading to a significant market correction.