Critical Developments for Bitcoin and Ethereum Investors

In recent times, the collapse in the cryptocurrency market has significantly affected open positions on Bitcoin (BTC) and Ethereum (ETH). The fact that investors have not yet returned to the market after last week's sharp decline is noteworthy. Especially the derivatives markets have experienced a significant contraction during this process.

According to data shared by CryptoQuant analyst Julio Moreno, the amount of open positions in Bitcoin futures has decreased by 77,000 Bitcoin equivalent since Friday. On the Ethereum side, this decline has reached a level of 1.67 million Ethereum. These figures indicate that hundreds of billions of dollars in leveraged positions have been wiped out from the market.

However, this contraction is not merely a numerical change. Julio Moreno notes that the fact that open positions have not increased again despite a partial recovery in prices demonstrates caution in the markets. The -77,000 Bitcoin decline seen in Bitcoin is recorded as one of the sharpest position liquidations since the FTX and Luna periods. However, this time, the slow return of investors indicates that the situation has become even more critical.

As the open position volume swiftly trends downward, this development shows that a liquidity shortage continues in the markets. According to experts, weakness in leveraged trading volume may lead to low volatility in the short term. However, once investor confidence is restored, this tightening in futures trading has the potential to trigger a new price wave.

In conclusion, it is important for investors to closely monitor developments in the Bitcoin and Ethereum markets. Price movements and the states of open positions can help shape potential investment strategies.