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Bitcoin News Today: Bitcoin Shorts Rise as Spot Demand and ETF Inflows Stay Strong
Bitcoin traders are growing increasingly cautious as short positions continue to rise. According to data from CoinGlass, the BTC long/short ratio fell below the neutral 1.0 mark between September 11 and October 9, signaling a stronger bearish tilt. Yet, while short interest builds, spot demand remains resilient, suggesting traders may be underestimating Bitcoin’s potential upside. Could this setup trigger a sharp short squeeze?
Shorts Dominate as Sentiment Turns Defensive
The BTC long/short ratio was rather tame over the last month, and it indicates the continued risk aversion of traders. The buy/sell volume data indicates that sellers control most of the sessions, particularly after the end of September, when the ratio dropped to near 0.85.
There were short-lived rebounds to parity with limited credibility on the part of buyers. The chart shows the green bars to indicate long positions and the red bars to indicate shorts. The preeminence of red depicts uniform pressure to sell. This pattern is consistent with the lateral price movement of Bitcoin in recent weeks, corresponding to the general market insecurity.
Market participants are now in a defensive stance due to the tightening liquidity and the mixed macroeconomic indicators. As shorts continue to rise in derivatives markets, the immediate outlook of Bitcoin will be whether spot buyers can continue to support it around the $121K level.
Bitcoin Price Tests $121K as Liquidity Builds
Bitcoin is trading at $121,540.74, according to CoinMarketCap, which represents a 1.02% decrease in Bitcoin over the day. Its market capitalization is valued at 2.42 trillion, and its fully diluted valuation (FDV) is valued at 2.55 trillion.
Bitcoin recorded increased activity as its 24-hour trading volume increased by 26.59 percent to 74.03 billion. The volume-to-market-cap ratio is sustained at 3.05%, although the momentum is waning. The circulating supply of Bitcoin is 19.93 million BTC out of 21 million maximum, which is at a 100% profile score.
As indicated in the price chart, the stock has fallen below the point of 122.22K, and then it has moved sideways around 121K. Liquidity clusters are being followed by traders, and approximately $120.96 million of short liquidations are stacked around $121.8, indicating that there is a lot of risk in the event of an upward price move.
ETF Inflows Reflect Institutional Confidence
While traders position for downside, institutional inflows paint a different picture. On-chain data from SoSo Value shows BlackRock’s iShares Bitcoin Trust (IBIT) logged a $255.47 million net inflow on October 9. The trust’s cumulative net inflow now totals $65.19 billion, reinforcing its dominance among spot Bitcoin ETFs.
IBIT’s net assets reached $97.32 billion, with a Bitcoin market share of 4.03%. The trust traded near parity, with a premium/discount rate of 0.10%, showing steady investor demand. Its daily trading volume here reached 55.76 million shares, valued at $3.84 billion.
The ETF has maintained consistent inflows across 2024 and 2025, even during periods of price correction. Notably, this contrasts with mid-August, when IBIT contributed to 70% of the $800 million in outflows, dragging Bitcoin down 9% from its all-time high of $124K.
Analyst Aixbt described shorting into ETF inflows as a “bold move,” citing low profit-taking and ongoing institutional accumulation. The data suggests Bitcoin’s consolidation could evolve into a bullish short squeeze as liquidity builds and spot bids remain firm.
Conclusion
The Bitcoin market has a distinct retail hesitation and institutional trust. As traders keep piling shorts, CoinGlass data shows a developing bearishness. However, the fact that the strong spot demand and inflows into the iShares Bitcoin Trust are increasing is an indication that investors have long-term interest. Bitcoin could be on the verge of a possible short squeeze as short positions are concentrated around major price zones with increasing volatility in the market.
Read More: Bitcoin Price Steady at $121,000, Dogecoin Gains 0.29%, Ethereum Drops 2.43%
