Reduced leverage use in Bitcoin futures greatly reduces the odds of cascading liquidations in the case of a BTC price pullback.
Since March 25, Bitcoin (BTC) has struggled to maintain its value above the $71,000 mark, a trend that some may view as a sign of bearish momentum. Nevertheless, insights from the BTC derivatives market reveal a more stable environment, as the previous atmosphere of rampant optimism has notably subsided.
Currently, Bitcoin finds it challenging to hold its ground above the $70,000 threshold. Yet, certain analysts believe that the recent U.S. inflation figures—showing unexpected resilience—and the unsustainable U.S. government fiscal trajectory create an ideal backdrop for investing in scarce assets.
Market analyst MatticusBTC attributes the inflation surge to the significant monetary expansion orchestrated by the U.S. Federal Reserve during the 2020-2021 period. As a result, the Federal Reserve may have no choice but to maintain elevated interest rates. However, this strategy has its limitations, especially considering the interest burden of U.S. government debt.
