Bitcoin drops to $58,000, lowest since 2024, as short-squeeze setup emerges

Bitcoin crashed 5% to $58,000, its lowest since 2024, but derivatives data shows crowded short positioning and $409 million in buy orders below market, setting up a potential short squeeze.

• BTC dropped to $58,000 before bouncing to $59,400, with ETH falling 5.5% to $1,550 and SOL and DOGE posting similar losses
• Funding rates are negative and open interest rose as price fell, signaling traders are doubling down on shorts
• There is $409 million in buy bids between current price and $50,000, but only $93 million in sell orders up to $70,000
• The Fed under new Chair Kevin Warsh signaled the next move is likely a rate hike, adding pressure on risk assets

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