01 Apr 2024

More leverage shakeouts to follow?

Retail traders entered the market aggressively with leverage over the weekend. When prices turned sour on Monday, this led to a quick liquidation cascade towards $65,000. Is the market now fully deleveraged, or is it more downside liquidation potential?
AOC Cover 2 apr, 2024
A shakeout following the weekend’s leverage build-up
As bitcoin climbed higher over the weekend, so did the funding rates and open interest on the offshore exchanges, indicating retail building leverage rapidly. This was followed by a downside move, sending BTC from close to $70,000 to $65,000 in less than 24 hours. 
Funding rates are back to neutral but open interest remains high
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