Crypto Leverage Plummets to Historic Lows Amid Record Liquidations

Recent data reveals a dramatic decline in trading leverage within the cryptocurrency markets, with funding rates falling to levels not seen since 2022’s bear market. This shift suggests a major recalibration of trader strategies as a recovering crypto market sees significant gains in Bitcoin and Ethereum. Experts warn that this extreme situation could create a short squeeze phenomenon in the near future, potentially driving prices higher despite current bearish signals.