Bitcoin Futures Market Sees Increased Leverage Amid Price Recovery Hopes

As retail investors jump back into Bitcoin trading, experts caution that rising leverage could lead to significant market shakeouts.

The Bitcoin futures landscape is experiencing notable changes, with an increase in leverage as traders speculate on a potential price rebound. Recent activity indicates that retail investors are returning to the market, eager to capitalize on perceived buying opportunities, resulting in a widening futures basis.

However, one industry expert has expressed concern that the current market dynamics could culminate in an "over-leveraged shakeout." This term refers to a scenario where excessive leveraged positions could lead to drastic price corrections, potentially affecting many traders.