Analysis: Bitcoin rises and falls below $70000, institutional spot buying faces short positions in derivatives Odaily Planet Daily News: Bitcoin has fallen below $70000, and there is a clear differentiation in the current market. Institutional spot buying continues to accumulate Bitcoin, while derivative traders continue to increase their short positions. In history, when spot accumulation and negative funding rates occur simultaneously, it often triggers a "short squeeze", where short positions are forced to close and push prices up. However, this result is not inevitable. Analysis suggests that this round of correction mainly reflects the profit taking pressure of short-term traders. Some investors chose to cash out and leave after buying during the rebound. Despite the recent rebound, the market still lacks sufficient confidence in whether the upward trend can continue. The sentiment in the derivatives market is also pessimistic, with funding rates remaining significantly negative, indicating that traders are paying fees to maintain short positions, but at the same time, spot demand still exists. The recent inflow of stablecoins into exchanges has reached a new high since 2026, and the cash flow of spot Bitcoin ETFs has also returned to net inflows.