Analysis: In the current market, the risk of a downside squeeze is greater than that of an upside short squeeze, with long funding pressure continuing to rise.
May 28 – Crypto analyst Murphy reports that in today’s perpetual contract market, long-position holders are paying shorts roughly $390,000 in hourly funding fees—way above the 7-day average of $220,000. This signals broad bullish sentiment, as longs face steep costs to keep their positions open.
Murphy notes that since the 7-day average funding fee flipped positive on May 12, the long premium has kept expanding—especially in recent days. High funding fees aren’t sustainable forever: if the price doesn’t bounce back quickly, some longs will likely close their positions proactively to avoid more cost pressure.
At the same time, the market’s Open Interest (OI) has entered a downward trajectory, meaning liquidations and deleveraging are already underway. Murphy warns that if BTC drops below a key support level again, it could trigger a cascade of liquidations—sparking a classic “long squeeze” scenario. He stresses current conditions are totally different from the sustained uptrend ph
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Bitunix Analyst: BTC Breaks Below $74,000 — Crypto Enters Leverage Shakeout Phase
May 28 — Markets remain fixed on two core concerns: renewed inflation pressures and prolonged geopolitical unrest. Federal Reserve Governor Cook has stated she would support further interest rate hikes if inflation fails to cool as projected, signaling growing internal acceptance within the Fed for a “higher for longer” rate policy stance. From energy prices to AI-related capital expenditures to global supply chain costs, investors are increasingly worried a new wave of reflation is taking shape.
Turning to the Middle East: While diplomatic talks drag on, military conflict has not eased. U.S. forces have again targeted Iran-linked military sites, and standoffs between drones and commercial shipping persist around the Strait of Hormuz. Former President Trump has reiterated he will not ease sanctions on Iran, nor allow Tehran to gain control of the strategic waterway. That means even as some in the market hold out hope for a near-term ceasefire, energy supply chains and global shipping
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As Ethereum Drops Below $2,000, Futures Open Interest Hits All-Time High, Signaling Increasing Bearish Sentiment in the Market
May 28 marked a key point for Ether (ETH), as the crypto asset fell below the $2,000 threshold for the first time since March this year. Over the past seven days, ETH has shed nearly 8% in value, with a more than 5% drop in just the last 24 hours. Meanwhile, open interest (OI) for ETH futures has climbed for three consecutive days, hitting an all-time high of 16.39 million ETH, equivalent to roughly $32.5 billion in nominal terms. Analysts interpret the continued rise in OI amid spot price declines as a sign of increasingly aggressive leveraged shorting in the market.
10x Research founder Markus Thielen noted that more investors are abandoning ETH, citing the cryptocurrency’s lack of cash flow generation. Adding to that pressure, rising U.S. bond yields are making staking yields on ETH far less attractive. Compounding these headwinds, U.S. spot ETH ETFs saw $401 million in net outflows this month—a full reversal of April’s $354 million net inflow. Market sentiment has also soured du
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ByteDance is reportedly developing a custom CPU to support AI requirements
May 28 – Sources told Reuters that ByteDance is developing its own central processing unit (CPU) to address the growing demand for its artificial intelligence (AI) infrastructure. The Chinese tech giant’s expansion plans are being constrained by recent surges in chip prices and long-term supply shortages. This move underscores the industry’s acceleration toward the “inference” stage of AI, which has drastically increased CPU demand and led to a CPU shortage in recent months.
Sources added that ByteDance plans to deploy its in-house developed CPUs in servers and data centers to support internal operations and prepare for the large-scale launch of its proxy products, including the Coze platform.
ByteDance is advancing along two CPU architecture paths: one based on the Arm architecture, and the other built on the open-source RISC-V instruction set architecture. The company is evaluating which design is more suitable for its long-term data center needs. Currently, ByteDance procures CPUs
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Nominal Value of $7.5 Billion Crypto Options Set to Expire Tomorrow, BTC’s Key Support at $75,000
Per Deribit data, $75 billion worth of cryptocurrency options are set to expire tomorrow, May 28th. Here’s a breakdown of the expiring contracts:
- Bitcoin (BTC) options: Have a notional value of $62.1 billion, a put/call ratio of 0.88, and a maximum pain point at $75,000;
- Ethereum (ETH) options: Boast a notional value of $12.9 billion, a put/call ratio of 0.81, and a maximum pain point at $2,200.
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