Bitcoin may soon face a $10 billion short squeeze, which could result in a significant price rally. Key data indicates this possibility.

As traders engage in short selling—betting that the asset’s price will decline—a short squeeze can occur when the price instead rises. This forces short sellers to buy back their positions to cover losses, further boosting the price.

The potential for such an event highlights the volatility and speculative nature of Bitcoin trading, where price movements can be swift and dramatic.