Bitcoin Shorting Gains Momentum Amid Tightening Liquidity and Macro Volatility

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Bitcoin’s shorting momentum is accelerating, with rising leverage ratios and growing use of momentum indicators as traders ramp up bearish bets. One trader reportedly booked over $22 million in BTC short profits. Volatility indicators remain elevated ahead of the Bank of Japan meeting, a historical trigger for Bitcoin sell-offs. Derivatives dominate flows, with the spot-to-derivatives volume ratio at a three-month low. Leverage—not demand—is fueling the move, raising risks for late-long positions.
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