
Bitcoin’s prolonged sideways trading is punishing leveraged traders as rising futures positions continue to unwind during market pullbacks. Binance’s Bitcoin-denominated Open Interest climbed from 104,000 BTC to 130,000 BTC between late January and March, with a similar 53,000 BTC increase through early June despite limited price movement. Both periods were followed by sharp corrections that erased about 35,000 BTC of Open Interest within two weeks. Why it matters: Positive funding rates indicate traders were betting on a breakout, leaving overleveraged long positions vulnerable to liquidation as Bitcoin remains stuck in a low-volatility trading range.
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