K33: Bitcoin derivatives market forming 'dangerous' setup as hopes of a swift bounce fuel rapid leverage climb

Perpetual futures traders have rapidly added leverage during bitcoin’s decline, creating a derivatives regime that K33 says resembles past periods that preceded further drawdowns.ETF outflows, long-term holder selling, and weak recoveries compared to tech stocks have intensified sell-side pressure as bitcoin trades near levels last seen in April, Head of Research Vetle Lunde said.