The renewed energy in the markets at the week’s start has carried over nicely into the cryptocurrency space, with Bitcoin—BTC —making a dramatic return to the $108,000 level as we now head toward the weekend. Just four days ago, BTC was on the edge of dipping below the less-than-psychological $100,000 threshold. Retail traders in the space had been FOMOing heavily into Bitcoin, which had pushed its price so high that some were starting to call it a bubble. Panic selling in these same retail traders pulled the market downward, but now we are back on the way up. The price of Bitcoin surged from 105,000 dollars to 107,000 in a matter of hours on Monday, before further increasing to touch 108,000 dollars. The move, of course, came as a pleasant surprise to holders, but it was also something of a relief to soured market sentiment, which, only weeks earlier, had taken the nascent industry to new depths of despair. Monday’s surge led some observers to hypothesize about the return of a bull market, even if others pointed wryly to the nature of Bitcoin’s recent trading and the kinds of things that are often said before a major price drop. Monday has kicked off with a bang for crypto traders, as Bitcoin has quickly returned to $108K. After threatening to fall below $100K just 4 days ago, retail traders panic sold. Now, they are showing signs of flooding back in with the 2nd largest spike in FOMO in the past 2… pic.twitter.com/ZlPvHy8CGg — Santiment (@santimentfeed) June 9, 2025 Short Liquidations Spark Rally The most recent surge in the market seems to have been generated by overzealous short sellers being forced to cover their positions. One measurable effect of this was seen between 1 and 5 PM, on a Monday afternoon, when total liquidations of short positions jumped from $105,000 to $359,000. Rising prices were clearly doing their job, but it is also possible that some market orders had hit certain key price levels, generating an uptick in price behavior that even more short sellers wanted to stay away from. All in all, something like $250 million worth of short positions were liquidated during this time. $BTC jumped from $105K to $107K today – likely fuelled by a wave of short liquidations. Over just 4 hours, total short liquidations spiked from $105K to $359K (24H SMA). Last week’s negative funding rates had pointed to rising short appetite, and today, those bets got squeezed. pic.twitter.com/TMkdyXjOUZ — glassnode (@glassnode) June 9, 2025 In the week leading up to today, the funding rates across the main derivatives exchanges swung negative and maintained that position. This was a clear signal that traders were heavily shorting Bitcoin. And when a trading environment is heavily short, it becomes increasingly ripe for a short squeeze, which is when the price unexpectedly moves upward and forces traders who are short (betting that the price will go down) to the buy side in order to cover their now losing position. Although rapid upward price spikes can result from a short squeeze, they are not necessarily long-lasting. Traders now must watch for sustained follow-through volume and for new buying pressure—especially from institutional investors—to step in and support these elevated price levels. Retail Sentiment Turns Euphoric Once Again Retail-driven enthusiasm is surging again, as seen on social media where the FOMO meter is registering its second-largest spike in the past two weeks. This is bringing previously sidelined retail investors back into the market. It is almost hard to believe after the plunge seen just days ago when Bitcoin was at a sub-$100,000 breakdown level, but this enthusiasm is the real deal. In the past, Bitcoin has had a tendency to move in the opposite direction of extreme retail sentiment. When FOMO (fear of missing out) reaches its highest levels, it coincides with local tops for Bitcoin. Likewise, when the crowd is in a state of capitulation (when everyone is throwing in the towel), it has frequently marked a bottom for Bitcoin. This sentiment dynamic is particularly intense in crypto, where price action is often driven by psychological and behavioral patterns. Particularly, social media has turned out to be a counter-indicator of sorts. When it is retail traders who are dominating the platforms, it is also the same time that experienced market participants are reducing their exposure. Given the intensity of today’s surge in retail sentiment, the next 24-48 hours should tell us a lot about the duration and sustainability of this current rally. #Bitcoin spot ETFs saw net outflows of -4.6K $BTC last week – first negative week in 8. Total holdings are now 1.20M #BTC , down ~11.5K #BTC from the late-May peak. A pause in demand after a strong run-up – watch for signs of re-acceleration. pic.twitter.com/TCVz5sL65Z — glassnode (@glassnode) June 9, 2025 ETF Outflows Raise Questions About Institutional Appetite Although captivated by recent short-term price movements, traders should also be mindful of emerging signs indicating a slowdown in institutional demand. Last week, Bitcoin spot exchange-traded funds (ETFs) experienced net outflows of 4,600 BTC; that marks the first negative week for ETFs in eight. Total ETF holdings now stand at approximately 1.20 million BTC. They are down roughly 11,500 BTC from their peak in late May. Institutional investors might be either taking profits or pausing to reassess after the recent strong run-up of several months in that they might be either taking profits or pausing to reassess after the recent strong run-up of several months in that they might be either taking profits or pausing to reassess. Signs of renewed ETF inflows would be clear evidence of continued institutional interest and, we think, could act as a strong confirmation of the more than just technically squeezed recent rally. At present, the market is experiencing a degree of optimism because of Monday’s rebound. But as always in the world of cryptocurrency, volatility is at a peak, sentiment is changeable, and the next big market move could come just as fast as the last one. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. 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