Bitcoin caught in a leverage trap... Long betting despite the decline, increasing market anxiety.

Source: BlockMedia Original Title: Bitcoin Caught in Leverage Trap… Long Bets Despite Decline, Heightening Market Anxiety Original Link:

Bitcoin futures open interest surges by 36,000 BTC

ETF fund outflow…individuals fill the gap left by institutions

“Expansion of investments that cannot bear risks” …WSJ and Bloomberg issue simultaneous warnings.

Bitcoin plummeted 30% within a month after reaching a high of $126,000 in early October. Market anxiety is spreading as individual investors attempt to rebound with excessive leverage, leading to increased losses.

“Caught in a leverage trap”

On the 19th( local time), according to Bloomberg and the Wall Street Journal( (WSJ)), Bitcoin has fallen 30% from its early October peak, dropping to $88,522 in the New York market. Investors, hoping for a rebound, have expanded their leveraged( borrowing) positions, but the continued price decline has led to a surge in open interest(.

According to K33 Research, last week the open interest for Bitcoin perpetual futures on major exchanges increased by 36,000 BTC), amounting to 3.3 billion dollars(. This is the largest scale since April. The funding rate has maintained an upward trend, showing that long positions have concentrated even during the downtrend.

) Institutions 'exit', individuals 'expand'… “ETF funds outflow, liquidity gap”

On October 10th, after about $19 billion worth of derivative positions were liquidated in a single day, there was a continued outflow of funds from ETFs and a slowdown in institutional buying.

On the other hand, individual investors increased their open positions in anticipation of a rebound. K33 Research analyzed that “the leverage structure similar to October is repeating, and in five out of six past cases, there was an average additional decline of 15% within a month.”

The WSJ stated, “In the U.S., some derivatives platforms are launching 10x leverage perpetual futures, and the Chicago Options Exchange ### Cboe ( is also anticipated to list continuous futures for Bitcoin and Ethereum, leading to the spread of high-risk products.” It pointed out that “investors are exposed to ultra-high-risk strategies that provide $100 exposure with a $1 margin.”

) “Lack of Risk Control”… Concerns about Structural Vulnerabilities in the Market

Increasing leverage raises liquidation pressure during market declines, amplifying volatility. The WSJ reported that “the daily liquidation size reached a record high following President Trump's announcement of tariffs on China in October.”

Jake Ostrovskis### Wintermute( over-the-counter) The person in charge said, “Unless there is a regulatory body to limit leverage, the over-investment structure will continue.”

Bloomberg analyzed that “the market is on a 'precarious balance' as institutional demand decreases and individual leverage betting increases.”