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Bitcoin rebound driven by derivatives market; sustainability uncertain

Bitcoin rose to around $64,500, pushing short-position liquidations to their highest daily level in about a month. The move was driven more by a short squeeze in derivatives markets than by spot buying, Cointelegraph reported. CryptoQuant said crowded short positioning and diverging funding rates helped lift prices, but called the rally a low-volume liquidity trap. It flagged weak spot demand and limited inflows into spot bitcoin ETFs as key constraints.