Summary
- It was reported that Bitcoin's short positions have increased, and volatility expansion is expected.
- Open interest in perpetual futures has increased, indicating that many investors are forming short positions.
- It was stated that a short squeeze could occur if Bitcoin's price surges, or a price decline could be triggered if it drops.
Bitcoin (BTC) short positions have significantly increased, leading to analysis suggesting that price volatility may rise.
On the 6th (local time), Matrixport reported that "Bitcoin has recently risen by 25%, and open interest (OI) in perpetual futures has also increased significantly," stating, "Unlike a typical bull market, short positions are increasing significantly."
According to the data, recent Bitcoin open interest has surged from $22 billion to $29 billion. However, the funding rate remains near zero, indicating that many traders are building short positions.
As a result, an increase in price volatility is also expected. The report stated, "If Bitcoin's price rises and large short positions are liquidated, a short squeeze could occur, leading to further surges, but if the price drops, short positions may increase further, triggering a price decline." It further emphasized, "In the current market structure, volatility is likely to increase in either direction."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit![[Market] Bitcoin falls below $71,000…Lowest level since October 2024](https://media.bloomingbit.io/PROD/news/0e5880b9-61dd-49d4-9d2e-c47a3fb33a93.webp?w=250)
