Bitget Research highlights that while the recent liquidation wave removed some vulnerable long positions, the broader crypto market open interest remains stubbornly high at $140.9 billion. Ryan Lee, chief analyst at the firm, warns that the current leverage levels leave the asset class exposed to sharp price swings should inflation data surprise the upside. A hotter reading would likely force traders to reassess Treasury yields and Federal Reserve policy, potentially driving a second round of forced closures.
In section Cryptocurrency
Bitcoin Faces Leverage Risks as CPI Data Looms
Bitcoin remains vulnerable to a fresh wave of liquidations as high open interest persists despite a recent $811 million selloff. Analysts caution that unless market positioning resets, a hotter-than-expected U.S. Consumer Price Index release could trigger aggressive volatility and force further adjustments across leveraged positions.
Lacie Zhang, research lead at Bitget Wallet, identifies persistent core inflation as a key risk factor that investors may be underestimating. With Bitcoin trading near $83,400, she points to $81,000 as critical support and suggests bulls need a sustained breakout above $84,500 to regain market control. Meanwhile, institutional demand remains mixed; while Nansen reports $175.7 million in Bitcoin ETF inflows on October 13, on-chain data has yet to show broad accumulation, suggesting that current ETF activity is driven by selective positioning rather than a definitive shift in market conviction.
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