K33 analyst Vetle Lunde has warned of potential volatility in the markets, particularly after Bitcoin recently broke its all-time highs. The report indicates that while CME exposure has increased slightly, it remains far below previous peaks. Perpetual futures show a mixed trend, with a notable drop of 15,000 Bitcoin in open interest since May, although overall interest remains close to April highs at 278,000 BTC. This environment suggests heightened liquidation risks and potential spikes in volatility as we move into the summer months, traditionally seen as weaker for crypto markets. Despite this, there is optimism that increased institutional interest may align cryptocurrency performance more closely with traditional markets, mitigating some risks. Overall, analysts are advising caution due to the market's ambivalent signals and the accelerating potential for volatility based on current trading patterns.

Source 🔗