Bitcoin Market Now is Not Over-Leveraged, Time to Take a Long Position?
2024-09-30
Bittime - Lately, the Bitcoin market continues to attract attention due to its erratic Bitcoin price movements.
However, Matrixport said that although Bitcoin is highly volatile, the market is not currently experiencing excessive leverage. Read this article to find out more!
Bitcoin Market is Not Over-Leveraged
Source: x.com/matrixport
Matrixport said that currently the market Bitcoin is in a stable position, without too high leverage. This condition is quite good because the risk of sudden price drops is smaller.
Additionally, Bitcoin's funding rate is close to zero, which suggests there are not many long positions in the futures market. This indicates that the recent increase in Bitcoin prices was most likely triggered by direct purchases on the spot market.
Read Also: Unusual, Bitcoin Prices Rise in September This Year
Bitcoin Spot Market
As already mentioned, Spot markets play a bigger role in Bitcoin's current price increase. Purchases on the spot market are usually made by investors who believe in Bitcoin's long-term potential.
Meanwhile, the futures market is more speculative and often involves high leverage. However, because the funding rate is low, the futures market currently does not dominate Bitcoin price movements.
Bitcoin Volatility
Although Matrixport provides a positive outlook on the current Bitcoin market, it is important to remember that volatility remains. Bitcoin prices can fluctuate drastically in a short period of time.
However, with low leverage and more dominant spot buying, this volatility is not necessarily a threat, but rather could be an opportunity.
With more stable market conditions, investors may consider adding to long positions. This could be a good opportunity to take advantage of potential price increases.
Read Also: Bitcoin Price Predicted to Reach New ATH Later This Year
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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.
