As mentioned last week, the open contracts (positions) of BTC and ETH are both at high levels. This week, although the price of BTC has fallen, the open interest has increased (the blue line shows last week's data, and this week is even higher than last week), indicating that speculators are taking on more risk. An increase in open interest means more leveraged funds; the more leverage there is, the easier it becomes for prices to soar or plummet, leading to greater volatility.
On the ETH side, this round of decline has cleared some leverage (open interest has decreased slightly), but not by much, and it is still not far from its nearly one-year high. However, the leverage on the ETH chain may be even more intense than that of BTC. Once liquidation is triggered, the chain reaction could be more severe, which is why ETH has seen larger declines recently, but due to buying support, it also rebounds more quickly.
In simple terms: BTC's open interest keeps increasing despite the price drop, accumulating volatility risk; ETH has cleared some leverage, but the risks are still significant, with sharp declines but also quick rebounds, so don't blindly chase!
When to enter, when to exit? How to catch strong coins? What profit-taking level to set? Tides will inform fans immediately on Shequn, as long as you follow my thoughts and execute what I say, you will definitely profit!
