The bitcoin (BTC) market is exhibiting “aggressive caution” heading into the typically low-volume Easter period amid recent weak price performance, ongoing Iran-led uncertainty, and fresh quantum computing warnings, according to research and brokerage firm K33.
Those catalysts have initiated a new wave in bitcoin defensive positioning, Head of Research Vetle Lunde noted in a new report, with leveraged short bitcoin exchange-traded funds holding 9,012 BTC in exposure — the second-highest level ever following 22% growth in short exposure over the past few days.
“Such jumps in short exposure typically reflect concentrated bearish positioning, and point toward aggressive caution from traders,” Lunde wrote.
Nevertheless, with negative funding rates remaining sticky, Lunde noted that the current environment matches typical bottoming stages as bearish positions overcrowd the market.
“Annualized 30-day average funding rates have now stayed negative for 32 consecutive days, and are two weeks away from surpassing the duration of the negative funding rate regime from November to December 2022,” he said.
Easter slowdown
A flurry of public holidays in many parts of the world typically drives a drop in trading volume and volatility, Lunde noted, particularly on the Thursday before Good Friday and the days immediately after.
Many traditional markets are closed on Good Friday and Easter Monday, and while crypto markets trade 24/7, they are not immune to a reduction in liquidity, per the report, especially during European hours.
Comparing bitcoin’s seven-day volume in the weeks ending Easter Monday with the average seven-day volume, bitcoin has seen lower trading activity during Easter than the yearly average in every year since 2019, Lunde said.
A similar effect is demonstrated in bitcoin volatility, with lower seven-day measures every Easter compared to the yearly average, Lunde added.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
