Catenaa, Friday, August 27, 2025- Bitcoin may face further losses after a surge in leveraged positions and a significant rotation into Ethereum, analysts said. Notional open interest in bitcoin perpetual futures hit a two-year high of 310,000 BTC ($34 billion), raising the risk of long-side liquidations, according to K33 Head of Research Vetle Lunde.
Annualized funding rates jumped from 3% to nearly 11%, reflecting aggressive long positioning amid flat prices.
Adding pressure, a long-term holder swapped 22,400 BTC for ETH via Hyperunit, pushing Ethereum to a record $4,956.
The ETH/BTC ratio surpassed 0.04, signaling growing market momentum toward Ethereum. Despite ETH’s USD rally, its long-term returns against BTC remain negative, Lunde noted.
Past ETH all-time highs have often preceded broader crypto market peaks, though BTC dominance at 58.6% suggests altcoin froth is not yet extreme.
Institutional flows remain cautious, with CME traders reducing BTC exposure and options markets adopting defensive positions. ETH futures, supported by ETF inflows and corporate accumulation, continue to outperform BTC.
Analysts warn that excess leverage and shifting momentum may trigger further BTC weakness, urging traders to adopt conservative positions until markets stabilize.
