Bitcoin derivatives traders are moving back into the market after an eight- 
month deleveraging phase, according to CryptoQuant analyst Darkfost, with 
Binance futures open interest now back above its 180-day moving average. The 
shift suggests risk appetite is returning after one of the longest reductions 
in leveraged exposure since the 2022 bear market. Bitcoin Traders Are 
Returning Darkfost said the deleveraging period began after the October 10 
event, as Bitcoin’s correction coincided with a worsening global macroeconomic 
and geopolitical backdrop. In that environment, traders reduced exposure 
across derivatives markets, with Binance futures activity showing a sustained 
contraction. “Since the October 10 event, Bitcoin has gone through a prolonged 
deleveraging phase across derivatives markets, represented here through 
Binance futures activity,” Darkfost wrote. “Following the October 10 event, 
combined with the deterioration in the global macroeconomic and geopolitical 
backdrop, traders largely opted to reduce risk. This deleveraging phase on 
Binance lasted roughly 8 months.” The analyst’s framework identifies 
deleveraging periods when open interest falls below its 180-day moving 
average. In market terms, that suggests futures activity is declining as 
corrections force liquidations, position closures and a broader reduction in 
investor exposure. For Bitcoin, the latest stretch was notable not only for 
its duration, but for how closely it resembled the setup seen in 2022 before 
the FTX collapse triggered another wave of liquidations. Related Reading: 
Bitcoin $78,000 Rebound Fizzles As Coinbase Premium Stays Red The turning 
point appears to have emerged in early May. Binance open interest has risen 
from $6.4 billion in March to roughly $8.96 billion, Darkfost said, moving 
back above its 180-day average of about $8.75 billion. That crossover matters 
because it signals that derivatives activity is no longer in contraction 
relative to its medium-term trend. “Since early May, however, the trend 
appears to be shifting,” the analyst wrote. “Binance Open Interest has risen 
from $6.4B in March to around $8.96B today, moving back above its 180 day 
average currently sitting near $8.75B. This effectively signals the end of the 
deleveraging period.” Related Reading: Wintermute Says Bitcoin Rally Was A 
Squeeze, Low $70,000s Loom The return of futures positioning has likely 
reinforced Bitcoin’s rebound from its corrective phase, according to the 
analyst. As open interest rises, more traders are deploying capital into 
directional and leveraged strategies, adding liquidity and potentially 
amplifying price moves. In this case, Darkfost argued that the renewed 
participation has “clearly contributed to the ongoing upward correction.” 
Still, the analyst stopped short of describing the move as a durable recovery. 
The distinction is important. A rise in open interest can mark renewed 
confidence, but it can also reflect short-term speculative positioning after a 
sharp drawdown. Darkfost framed the current move as a rebound trade rather 
than confirmation that Bitcoin has fully exited the pressure that began in 
October. “Despite a macro environment that has continued to deteriorate, 
Bitcoin’s sharp correction attracted more speculative traders looking to play 
a rebound,” he wrote. “That said, this trend remains highly fragile, and these 
traders could exit just as quickly as they entered if BTC resumes the 
correction that started back in October.” That fragility is the main risk in 
the setup. The same derivatives flows now supporting the rebound could reverse 
if spot momentum weakens or macro conditions deteriorate further. In that 
scenario, recently added leverage would become a source of downside pressure 
rather than support, especially if traders who entered for a rebound move are 
forced to unwind quickly. At press time, BTC traded at $77,479. Featured image 
created with DALL.E, chart from TradingView.com

Bitcoin derivatives traders are moving back into the market after an eight- month deleveraging phase, according to CryptoQuant analyst Darkfost, with Binance futures open interest now back above its 180-day moving average. The shift suggests risk appetite is returning after one of the longest reductions in leveraged exposure since the 2022 bear market. Bitcoin Traders &#8230;

Bitcoin Traders Step Back In After Longest Deleveraging Since 2022

Bitcoin retreated Friday evening, falling to $75,120 per coin and marking a 
2.8% decline over the course of the day. The daily decline added another 
bruise to what has already been a fairly miserable seven-day stretch, pushing 
weekly losses to roughly 5%. Bitcoin Loses Ground The $80,000 range once again 
appears increasingly distant, with bitcoin […]

Bitcoin retreated Friday evening, falling to $75,120 per coin and marking a 2.8% decline over the course of the day. The daily decline added another bruise to what has already been a fairly miserable seven-day stretch, pushing weekly losses to roughly 5%. Bitcoin Loses Ground The $80,000 range once again appears increasingly distant, with bitcoin &#8230;

Bitcoin Falls Below $76K as $209M in Long Liquidations Hammer Traders

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Bitcoin Traders Step Back In After Longest Deleveraging Since 2022

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