More leverage shakeouts to follow?

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For Professional and Institutional Investors

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?

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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.

K33 Research Pro

More leverage shakeouts to follow?

A shakeout following the weekend’s leverage build-up

Funding rates are back to neutral but open interest remains high

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