Bitcoin’s Rebound to $64K a ‘Liquidity Illusion’ as Trading Volume Falls

Onchain analytics platform CryptoQuant also revealed that funding rates across several major exchanges have moved toward negative territory. Binance, Bybit, OKX and Deribit have all recorded weaker funding conditions, suggesting short positions have become more prominent.

The recent bounce appears to have been helped by this imbalance. Bitcoin found support around the $62,700 monthly open before moving higher. As short positions accumulated, the market became vulnerable to a squeeze, allowing prices to rise quickly even without strong spot-market participation.

"Liquidity Illusion: Recent sharp moves in either direction resemble short-term liquidity sweeps rather than a sustainable organic trend," the CryptoQuant analyst wrote, noting that the $65,000 area remains an important resistance level.

In a note shared with Cryptoprowl, Utkarsh Ahuja, founder at Moon Pursuit Capital, said venture capital is becoming more concentrated, with investors putting a huge share of their money into AI. AI megadeals made up 87.5% of U.S. venture funding in the first half of 2026.

At the same time, investors are showing greater willingness to fund long-term, technically challenging projects. Fusion startups have attracted billions in private capital, while crypto allocation remains selective.