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Bitfinex Blog/

Leverage Reheats as BTC Price Structure Weakens

Bitfinex reports a cautious outlook for BTC due to deteriorating market structure, characterized by rapidly reheating retail leverage despite a price correction and a negative Coinbase Premium Gap indicating weak US spot demand.

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Why It Matters

The divergence between aggressive retail long leverage and a lack of institutional spot demand, combined with expensive put options, suggests a fragile price structure prone to further corrections.