Bitcoin Market Faces Increased Volatility Amid Rising Leverage

According to BlockBeats, Glassnode has reported that as Bitcoin's price rebounds, market leverage is increasing, heightening the potential for volatility through liquidations and stop-loss orders. Despite the rise in open interest positions, the average funding rate has decreased to -0.023%, indicating a market bias towards short positions. Bitcoin traders appear to be shorting the current rally, which could lead to a short squeeze if bullish momentum continues.

The seven-day moving average of the long funding rate premium has declined and continues to decrease. This suggests a reduced demand for long exposure to Bitcoin, further reinforcing the view that perpetual contract positions are predominantly short.