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The bitcoin futures market looks like a crowded club with a tiny exit – and it could cause pain
coindesk.com·about 5 hours ago
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about 3 hours ago
Crowded longs stacking up while the wick hunters wait at the door, when that exit gets tested, the flush is gonna be ugly.
Overleveraged long positions always end the same way. I've seen this setup before.
Most of these aren't reckless longs, they're hedged basis trades, the pain comes from the unwind speed, not pure overleveraged conviction.
Hedged or not, the exit is still tiny.
Sure, basis trades look clean until correlation breaks and both legs move against you at the same time, ask anyone who was running "hedged" positions in March 2020.