Bitcoin Price Drops Below $88K While Traders Increase Long Positions on Kraken

Crypto traders are actively buying Bitcoin on Kraken as its price falls to a three-month low. Key points include:

Bitcoin dropped below $88,000, influenced by risk aversion in the market.
A $1 billion increase in open futures positions on Binance indicates traders are shorting in anticipation of further declines.
Despite the drop, Kraken reports a surge in long positions, with the long-short ratio reaching a record high of 0.8.
The open interest in BTC perpetual markets has also reached a four-week high, suggesting potential rebound expectations among traders.
However, there are still more shorts than longs, indicating some caution in the market.
Current liquidations are normal, but excess leverage could lead to vulnerabilities and possible downside moves.