Alright, the Federal Reserve’s about to drop its rate decision in a few days. The crypto market?

It’s like a pressure cooker ready to blow. Matrixport, the sharp analysts over there, are waving a big red flag, crypto investors, you better watch your backs.

Excitement

See, what’s happening with Bitcoin futures is straight-up wild. Open interest, the total amount of active contracts, has ballooned by $6 billion in just two weeks. Ballooning means there’s a bubble, probably.

That’s like the mob showing up to a poker game with way too many chips. And the annualized funding rate has shot up to an eye-popping 19%.

This means traders are basically paying to keep their long positions open, signaling that everyone’s betting hard on Bitcoin’s price going up.

You want excitement? You got it, but excitement like this? Usually ends with someone losing big.

Never go full retard

And don’t think it’s just Wall Street getting reckless. Over in South Korea, retail trading volume exploded from $1 billion to $6 billion.

Yeah, six times as much. That kind of heat usually means traders are getting way too comfy, chasing the rally without looking at the risks.

It’s like the office rookie trying to take over the whole project without knowing what he’s doing, disaster waiting to happen.

Matrixport’s take? This aggressive long positioning often spells big-big trouble ahead. When the music stops, those overleveraged traders, who bet the farm, might get liquidated.

That sets off a chain reaction, a liquidation cascade, with sudden price drops, wild swings, and panic selling. ’Bitcoin is dead’ headlines everywhere.

If Bitcoin crashes, it won’t be a gentle stumble, it could be the kind of tumble that makes your head spin.

Market catalysts

But don’t toss your hat just yet. Despite these stormy signs, Matrixport remains bullish for the bigger picture.

Historically, August is the slowpoke month for crypto, with traders typically taking a breather, so the price performance lately?

Normal. And a comeback later this year is pretty likely, thanks to big events like the Federal Open Market Committee’s upcoming meetings and other market catalysts.

So Bitcoin’s long game is getting way too aggressive, and the house might come crashing down for some people.

But it’s about surviving the storm to see the next big break. Survive!

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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