Matrixport Warns of Short-Term Crypto Volatility Amid $6B BTC Leverage Surge, But Bull Trend Intact

Key Highlights:Bitcoin open interest surged $6 billion in two weeks, funding rate hit 19% annualizedRetail-driven rally in South Korea pushed daily crypto volumes from $1B to $6BHigh leverage and summer seasonality may trigger volatility and liquidationsBullish momentum expected to resume after August, post-FOMC clarityMatrixport has warned that the crypto market may face short-term volatility as rising leverage and summer seasonality pressure the current rally. In its latest update, Matrixport noted that Bitcoin open interest surged by $6 billion over the past two weeks, accompanied by an annualized funding rate spike to 19%, signaling a wave of aggressive leveraged long positions.The firm also highlighted South Korea’s sharp increase in retail activity, with cryptocurrency trading volume jumping from $1 billion to $6 billion, further fueling speculative momentum.However, as prices enter a consolidation or sideways trading phase, Matrixport cautioned that overleveraged positions may face passive liquidation risk, especially around the upcoming FOMC meeting. The U.S. Federal Reserve is widely expected to maintain its hawkish tone, and any surprises could trigger broader market reactions.The report also pointed to August as a traditionally quieter month in financial markets, suggesting that liquidity and volatility may thin in the coming weeks.Despite near-term risks, Matrixport maintains a bullish outlook for the remainder of 2025, stating that "key positives are building momentum for after the summer," and that the broader crypto uptrend is still intact.