Bitcoin faced an intensified short squeeze risk as bearish leverage reached $26 billion while prices held near $62,000. Funding rates on OKX hit an extreme negative of -453%, and the asset struggled to break above $65,000 due to heightened volatility. However, a steady decline in market-wide leverage was later observed, potentially mitigating the risks of mass liquidations.
Bitcoin options open interest surpassed $36 billion, reflecting a market balancing act between bullish bets and downside protection strategies.
Read the full storyA steady decline in crypto market leverage is reducing mass liquidation risks, even as Bitcoin faces persistent resistance below the $65,000 threshold.
Bitcoin perpetual funding rates on OKX plummeted to -453%, creating massive daily costs for short sellers and raising the risk of a market squeeze.
Coinglass data reveals $26 billion in short leverage positions, creating a high-risk environment for a massive short squeeze if prices rise.