The futures market is currently attracting attention with high leverage. There are two main groups:
- Institutional group (CME): Professional trading, usually not liquidated.
- Retail group: Usually liquidated more.
Open Interest increased by about $6B, reaching $28.3B, near the all-time high of $31B. The increase in leverage was due to the Fed's interest rate fluctuations. Institutions are also betting on Bitcoin's volatility in the coming weeks.
Investors receive $2M/day for holding long positions in Bitcoin futures, indicating high demand. However, there may be a strong correction to eliminate those who want to make quick profits.
Short liquidations increased by $493M, a positive sign for the possibility of a short squeeze after the sudden price drop, pulling the price back up.