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Wintermute says Bitcoin’s push past $80,000 is a short squeeze, not a healthy rally amid stagnant US Iran negotiations
May 12, 2026
< 1 min read
by Opeyemi Olanrewaju
for CryptoPolitan
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Bitcoin has crossed $80,000 for the first time since January, but algorithmic trading firm Wintermute says the surge is a short squeeze driven by derivatives market liquidations rather than genuine spot buying. This suggests the rally may be unsustainable and increases the risk of a sharp reversal, highlighting derivative-led volatility and market structure risks for crypto traders.
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Bitcoin has crossed $80,000. For the first time since January. However, Wintermute, the algorithmic trading firm, believes this to be only a “short squeeze” and has warned that the move is driven by liquidations in the derivatives market, not genuine spot buying by traders. This market report would mean the current price levels are very...
