Short squeeze incoming?

K33 Research Pro

For Professional and Institutional Investors

Ahead Of The Curve

19 Aug 2024

Short squeeze incoming?

In today's report, we examine the potential short squeeze setup in perps, with multiple metrics pointing toward bearish trades becoming crowded.

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Bitcoin weathers a summer storm, ETH lags

Bitcoin (2%) faced around 190k BTC of sell pressure throughout the summer from Mt. Gox, Genesis, the German government, and the U.S. government. Even with the global market shakedown of August 5 sprinkled in, four-month BTC returns sit at 0%, a solid sign of latent strength and demand. ETH (-2%) continues to underperform as ETF flows reign stagnant. However, if ETH ETF flows are to mirror the path of BTC ETFs, flows should pick up shortly.

Spot and volatility normalize after a wild start to August