Bitcoin’s $96B open interest shows role leverage plays in rallies, but there is a risk

Bitcoin’s $96 billion in derivatives open interest fuels BTC price momentum near all-time highs, but rising leverage use raises the risk of liquidations and market volatility.

Key takeaways:

Open interest in Bitcoin futures and options has ballooned to $96 billion, up sharply from 2022 levels.

Elevated speculative leverage fuels BTC’s bullish breakouts, but it also raises the risk of cascading liquidations, reminiscent of 2021 volatility.

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