Analyst: Record BTC futures volume signals unstable, leverage-driven market

A surge in Bitcoin futures trading volume has made the market more leverage-driven and structurally unstable, according to an analysis by CryptoQuant contributor Darkfost. The contributor noted that although the year is not over, Bitcoin futures volume has already reached an all-time high, with Binance holding a dominant share at over $24 trillion. The analysis suggests investors are prioritizing futures trading for short-term gains over spot purchases for long-term holding, establishing leveraged strategies as the primary investment tool. This shift makes the market more sensitive to forced liquidations and their aftershocks, thereby increasing volatility. Darkfost pointed to a large-scale liquidation event on Oct. 10, which caused prices to breach key support and resistance levels in seconds, as a clear example of this vulnerability. The contributor concluded that as long as leverage remains the main driver, Bitcoin will likely face an unstable and unpredictable environment.