Wintermute: BTC's Rally to $83K Looks Like a Short Squeeze, Not a Healthy Breakout!

Bitcoin climbed above $80,000 for the first time since January and briefly touched $83,000, reclaiming its 200-day moving average — but Wintermute is urging caution. The trading firm says the move looks more like a short squeeze than a genuine breakout, pointing to open interest surging from roughly $48 billion to $58 billion over the past month while spot volumes remain near two-year lows.

That combination — rising OI with thin spot demand — is a classic fingerprint of forced short covering rather than fresh buyers stepping in with conviction. Wintermute notes that U.S. equities also extended gains for a sixth straight week, with the Nasdaq and S&P 500 hitting fresh highs, adding a macro tailwind that may have amplified the squeeze.

The firm flagged this week's CPI print and any developments around the Fed chair transition as the next key catalysts. If macro conditions soften, a…