Right now, there is more than double the amount of money waiting to get wiped out on long positions than short ones.
Most retail traders FOMO into leverage at the worst possible time, only to get hunted by sudden volatility. It is incredibly painful to watch your account get wiped out on a flash crash right before the market finally pumps.
Looking at the leverage data for $BTC, long positions currently outweigh shorts by a massive 2:1 ratio. This means we have nearly $5 billion in long liquidations sitting open, compared to only about $2 billion on the short side. This imbalance happens when perp buyers get way too aggressive, leaving a massive trail of overleveraged positions that market makers love to target.
Historically, this level of greed is rarely what we see at an actual market bottom. While it is entirely possible for major assets like $ETH to keep grinding higher in the short term, the risk of a sudden leverage flush is very high right now.
Are you guys hedging your positions here, or are you comfortable riding out this volatility?