Murphy: Bitcoin derivative leverage has not been cleared yet, long positions face closing pressure

Analyst Murphy stated that the funding rate for Bitcoin perpetual contracts is positive, with a 7-day average of $79000 paid by long positions to short positions per hour. Long positions actively pay premiums to maintain and open new long positions. The current price decline, positive funding rates, and increased holdings reflect that long positions are continuously increasing their holdings in a loss making state. The combination structure of high open positions, positive interest rates, and weakened prices is fragile, and long positions are facing forced liquidation pressure. The leverage in the derivatives market has not yet been cleared.