Leveraged Bitcoin longs are prevalent again

BTC’s perpetual open interest and funding rates are rising again.

BTC’s perpetual open interest and funding rates are rising again.
This move demonstrates market confidence in BTC’s price outlook during the historically bullish fourth quarter.

Traders are again betting big on perpetual futures, undeterred by the sharp liquidation of leveraged long positions triggered by recent volatility.

Open interest in perpetual swaps (futures with no expiration date) is increasing, as are funding rates on major centralized and decentralized exchanges, suggesting a strong market preference for long positions.

“Optimism is resurfacing in the highly leveraged perpetual swap space. Far from retreating after last week’s liquidations, leveraged longs have returned strongly,” the company’s market insights team stated in a Monday update.

The team highlighted that global cumulative open interest in BTC perpetual swaps has increased from $42.8 billion to $43.6 billion. While a modest increase, the surge reflects renewed capital inflows.

A positive interest rate indicates that long position holders are willing to pay short positions a fee to maintain their positions.

Investors’ willingness to pay double-digit funding rates suggests growing confidence that prices will continue to rise during the historically bullish fourth quarter.

The data also suggests that last week’s volatility did not significantly shake investor confidence. BTC prices fell in the first four days of the previous week, with the largest drop on Thursday, when it fell below $109,000.

The price of Bitcoin has since recovered to around $114,000.