On-chain and derivatives data indicate that the Bitcoin price surge is primarily driven by spot demand, while the risk of a short squeeze is increasing. Bitcoin has risen approximately 10% year-to-date, with the price remaining below $97,000. This surge has been primarily driven by spot buying, rather than leveraged positions established through futures. Spot-driven rallies are generally healthier than leveraged ones, and the recent price movement from $90,000 to $97,000 has shifted from a leverage-driven rally to one supported by spot buying over the past week. Furthermore, according to Glassnode data, open interest in Bitcoin-denominated futures contracts is 678,000 BTC, comparable to 679,000 BTC on January 8th, indicating that overall leverage in the system remains largely unchanged, and perpetual futures funding rates are currently negative. (CoinDesk)