Bitcoin Surges to New Highs as $1B in Shorts Liquidated

Bitcoin's recent surge above $117,500 was driven mainly by short-covering in derivatives, leading to over $1 billion in liquidations and a drop in open interest, indicating that the rally may be fragile without new inflows. Analysts suggest that the current momentum is fueled more by derivatives activity than spot demand, and caution that the rally's sustainability depends on future market inflows. The weakening US dollar and signs of economic slowdown support Bitcoin's bullish outlook, but traders remain cautious about the rally's durability.