The post Aggressive Bitcoin Longs Raise Liquidation Risk, Analysts Say appeared on BitcoinEthereumNews.com.

Bitcoin Analysis With the Federal Reserve’s rate decision just days away, Matrixport has issued a short-term caution to crypto investors, highlighting signs of elevated risk in the market. According to the firm’s latest research, Bitcoin futures are showing a sharp rise in both open interest and funding rates, a combination that historically precedes increased volatility. In the past two weeks, open interest in BTC has grown by $6 billion, while the annualized funding rate has spiked to 19%—a clear signal of aggressive long positioning by traders. Analysts also pointed to an explosion in retail trading volume in South Korea, which surged from $1 billion to $6 billion, adding fuel to the current rally and raising concerns of overheated sentiment. Matrixport warns that this kind of positioning often leads to swift corrections as overleveraged longs become vulnerable to liquidation, potentially triggering sharp price swings in the near term. Despite the expected turbulence, the firm remains optimistic for the rest of the year. Historically, August tends to bring slower market activity, but Matrixport believes stronger momentum will return later in the year, driven by key events like the upcoming FOMC meeting. “The uptrend isn’t over,” the firm stated, pointing to several bullish catalysts expected to emerge after summer. Author Editorial Team Reporter at Coindoo
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Source: https://coindoo.com/market/aggressive-bitcoin-longs-raise-liquidation-risk-analysts-say/

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Filed under: News - @ July 24, 2025 5:32 am