#Bitcoin Leverage Unwind Hits 17-Month High During Global Tension


$BTC derivatives traders have pulled back massively as geopolitical tensions sparked the largest leverage unwind since August 2024.


Notional open interest in Bitcoin perpetuals dropped by 17,394 $BTC in just 24 hours following the escalation of conflict over the weekend.


The sharp deleveraging pushed open interest below 260,000 $BTC for the first time since early May, signaling widespread #derisk among traders.


$BTC rebounded above $105,000 after ceasefire news, gaining 2.3% as traditional markets also rallied on reduced geopolitical fears.


Bitcoin's volatility index crashed to 39.15, marking the lowest level since October 2023, as traders expect stable prices around current levels.


The monthly options expiry on June 27 could provide further clarity as derivatives flows remain neutral with limited directional bets.


The low-leverage environment mirrors April conditions, suggesting more stable price action despite ongoing #geopolitical uncertainties ahead.

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June 25, 2025 at 12:00 AM
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