Bitcoin Leverage Heats Up as Traders Bet on Price Rebound
Traders are increasing leverage in Bitcoin and crypto markets despite prices stagnating between $62,000 and $71,000 since early February. The growing annualized futures basis on major exchanges and rising funding rates indicate more speculative long bets and renewed risk appetite. Retail investors continue “buying the dip” and maintaining balances, with options data showing decreased demand for downside protection and a shift toward bullish sentiment. Analysts warn this speculative activity and leverage build-up often precede sharp market volatility or shakeouts, particularly affecting late-entry retail traders. Current optimism isn’t matched by sufficient trading volumes, creating a precarious environment vulnerable to sudden downturns and forced liquidations. The market stands at a critical point, with the possibility of either a recovery or mass investor exit if another wave of liquidations occurs. Bitcoin recently traded at $68,600, down 2.5% in the past 24 hours.
