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A potential gamma squeeze looms over the market due to these heavy short bets. This market dynamic occurs when market makers, hedging their exposures on call options, buy more underlying Bitcoin as prices rise, fueling a rapid acceleration in upward price movement. Historical precedents like GameStop exemplify how such squeezes can send prices soaring.
Currently, Bitcoin prices have already surged by approximately $2,200 today (up to $68,276), hinting that the gamma squeeze might be underway. This upward momentum is driven by hedge funds' shorts and can trigger explosive moves, further fueling optimistic forecasts.