Bitcoin's derivatives market has reached a 55% short skew, the highest in a month, prompting discussions about a potential short squeeze. Despite robust spot demand and $4.2 billion in inflows to BlackRock’s IBIT ETF, a significant $420 million short position by a major whale at $120,678 is currently down 0.76%. Analysts caution that shorting in the face of substantial ETF inflows and minimal profit-taking is risky, with $120.96 million in short liquidity concentrated around $121.8k. The market remains vigilant as Bitcoin consolidates near $121,600.