Bitcoin (BTC) saw net short positions rise by more than 52% over two days, with positioning accelerating around March 27 and discussed by Ali Martinez on March 28. The crowded downside bet increases the risk of a short squeeze if BTC moves higher, even as price action has not broken decisively lower. At press time, BTC traded at $66,805, up 1.2% in 24 hours but down more than 5% over the broader timeframe.

Bitcoin cleared $13.45 billion in expiring contracts as markets moved into the weekend, pushing Open Interest down 42% from about 550,000 to 320,000 contracts and easing short-term derivatives pressure. After slipping toward $65,500, BTC steadied around $66,300, but sentiment remained cautious and the next move appears tied to whether spot demand strengthens or leverage rebuilds first.

GameStop said in a Tuesday 10-K filing that it still holds 4,710 BTC worth roughly $368 million, following two months of market speculation. The filing states 4,709 BTC are pledged as collateral via Coinbase Prime/Coinbase Credit and 1 BTC remains held directly, with no Bitcoin sale reported. It also details a covered-call strategy using short-dated call options with $105,000–$110,000 strike prices expiring March 27.

At 8:30 a.m. Eastern time on March 28, 2026, bitcoin traded just above $66,000 while repeatedly testing the $65,500–$66,000 support area in a tight intraday range. The broader setup remained cautious, with BTC still below major moving averages and resistance clustered around $68,000–$69,000 and $70,000–$72,000. A move under $65,000 could open the way toward $62,000, while a sustained push above $67,000 may shift the short-term structure upward.

On 28 March 2026, Sen. Elizabeth Warren pressed the U.S. Commerce Department for records on how it is addressing what she described as potential national security risks tied to Bitmain. The concerns referenced include whether China-linked remote access could enable espionage or power-grid disruption, alongside Bitmain's outsized role in mining hardware supply and recent large U.S. purchases of its rigs.

Bitcoin fell to $65,548 before trading near $66,338, down 3.3% on the day, alongside heavy downside volatility. Liquidations reached $183 million, including $170 million in long positions, while on-chain trackers noted whales leaning into short exposure. Derivatives flows and momentum readings stayed negative, leaving $65k in focus, with $63,400 cited as a potential next level if selling persists.

Bitcoin continued to edge lower as traders rebuilt derivatives exposure while spot demand weakened. Analysts cited three consecutive days of BTC moving back onto exchanges, rising open interest, and a return to negative funding as signs of cautious positioning. They also pointed to a deeper negative Coinbase Premium versus a positive Korea Premium as evidence of regional demand divergence.

An Arkham report released Saturday, March 28, ranked Satoshi Nakamoto as the largest Bitcoin holder at about 1.1 million BTC worth over $77 billion, while Coinbase appeared second with roughly 982,000 BTC. The same data set showed Strategy with 738,000 BTC in total, including about 443,000 BTC visible on-chain. Commentators said Coinbase’s figure reflects user custody rather than corporate holdings, unlike Strategy’s treasury position.