When prices drop sharply, a decrease in open interest means both long and short positions are exiting. Longs are being liquidated or stopped out, while shorts are taking profits. With large liquidations and a low funding rate, further significant liquidations are unlikely, as primary short positions have mostly been closed. Therefore, the market is likely to enter a consolidation phase rather than reversing immediately
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BTC and ETH contract holdings have both significantly decreased, and leverage in the market has been nearly wiped out, especially for ETH leverage
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