In the past few days, global markets have experienced significant turbulence.
A quick glance at the current capital flows makes it clear what everyone is talking about.
At such a stage, the market is again discussing holding BTC:
Bitcoin and cryptocurrencies are at the stage of being safe-haven assets.
But the reality is different.
On the $HYPE leaderboard, the positions are actually the opposite:
➜ Long: 40%
➜ Short: 60%
● Total open contracts amount: $2.44 billion
➜ Long positions: $969 million
➜ Short positions: $1.477 billion
● Short positions in major currency pairs dominate:
$BTC: 33% bullish
$ETH: 34% bullish
$SOL: 41% bullish
$XRP: 47% bullish
$SUI: 42% bullish
● Meanwhile, more longs are only showing up in small-cap tokens:
$HYPE: 53% bullish
#FARTCOIN: 58% bullish
$PEPE: 57% bullish
Overall: The market is heavily skewed towards “shorts” in mainstream currencies.
Many people expect Bitcoin to break new highs. But as short positions accumulate, they will become fuel.
Before a larger drop occurs, closing these short positions is a high-probability event.
Therefore, I expect a significant rise to occur first, followed by a substantial drop by the end of January or February.