Analysts warn of drop as retail investors increase leverage amid BTC consolidation

While Bitcoin remains range-bound between $62,000 and $71,000, investors are increasing leverage to bet on a price rebound, Decrypt reported. The outlet noted that the three-month futures basis on major exchanges has widened from 1.5% to 4% since Feb. 13, indicating that futures are trading at a premium to spot prices as investors favor long positions. However, experts have warned that expanding leverage without corresponding trade volume is a risky phenomenon. Nick Ruck, head of research at LVRG, said that retail investors often enter positions late and face forced liquidations, which could trigger a temporary sharp drop during a deleveraging event. Ryan Yoon, a senior analyst at Tiger Research, added that the current market is on the borderline between a healthy recovery and investor capitulation. He cautioned that a sudden decline at this stage could lead to mass liquidations and a market exodus.