Although Bitcoin has achieved an increase of nearly 25%, the open interest has surged from $22 billion to $29 billion, but the funding rate has nearly dropped to zero.
This phenomenon indicates that some futures traders have not followed the trend to chase prices higher, but instead chose to establish short positions. The current special market structure may suggest that greater volatility is imminent:
Once the price of Bitcoin continues to rise, short sellers will face the risk of being forced to close their positions, thereby driving the price further up; conversely, if the price experiences a pullback, the short forces will be consolidated.
Overall, the market structure characteristics indicate that future volatility will significantly intensify.
