Bitcoin Faces Leverage Risks as CPI Data Looms

Bitget Research highlights that while the recent liquidation wave removed some vulnerable long positions, the broader crypto market open interest remains stubbornly high at $140.9 billion. Ryan Lee, chief analyst at the firm, warns that the current leverage levels leave the asset class exposed to sharp price swings should inflation data surprise the upside. A hotter reading would likely force traders to reassess Treasury yields and Federal Reserve policy, potentially driving a second round of forced closures.

Lacie Zhang, research lead at Bitget Wallet, identifies persistent core inflation as a key risk factor that investors may be underestimating. With Bitcoin trading near $83,400, she points to $81,000 as critical support and suggests bulls need a sustained breakout above $84,500 to regain market control. Meanwhile, institutional demand remains mixed; while Nansen reports $175.7 million in Bitcoin ETF inflows on October 13, on-chain data has yet to show broad accumulation, suggesting that current ETF activity is driven by selective positioning rather than a definitive shift in market conviction.