CryptoQuant: BTC’s Low-Volatility Phase Fuels Leverage Build-Up, Creating Conditions For Sharp Liquidations

by
Alisa Davidson

Revealed: July 13, 2026 at 7:08 am Up to date: July 13, 2026 at 7:08 am

by Anastasiia O

Edited and fact-checked:
July 13, 2026 at 7:08 am

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CryptoQuant researcher Darkfost has revealed a market evaluation highlighting how Bitcoin’s extended consolidation part is creating challenges for leveraged merchants. The report means that makes an attempt to revenue from low volatility by elevated threat publicity have repeatedly resulted in liquidations as value actions have failed to verify bullish expectations.

In line with the evaluation, Bitcoin’s present “chopsolidation” interval has created uncertainty amongst market individuals, with some merchants growing leverage in anticipation of a breakout. Nevertheless, modifications in Binance’s Bitcoin-denominated Open Curiosity point out that rising leveraged positions have traditionally preceded durations of draw back stress.

Utilizing Open Curiosity measured in BTC slightly than U.S. {dollars} removes the impression of Bitcoin value fluctuations and supplies a clearer view of modifications in dealer positioning. The information highlights two main accumulation durations this 12 months: one in late January and one other starting in early June.

Historic Leverage Construct-Ups Spotlight Recurring Liquidation Dangers

Through the first interval, Binance Open Curiosity elevated from roughly 104,000 BTC to 130,000 BTC over six weeks whereas Bitcoin remained inside a slim buying and selling vary. An identical sample emerged throughout the second interval, with Open Curiosity rising by almost 53,000 BTC over three months. Binance at present represents roughly 35% of whole Bitcoin Open Curiosity throughout the market.

Darkfost famous that each durations of rising leverage have been adopted by bearish value actions that lowered collected positions. Inside two weeks of every downturn, Open Curiosity declined by round 36,000 BTC and 35,000 BTC respectively, reflecting a mix of voluntary place closures and compelled liquidations.

The evaluation signifies that optimistic funding charges on Binance throughout these durations contributed to the stress, as leveraged merchants continued paying to take care of lengthy positions whereas the market moved in opposition to them. This implies that some individuals might have been trying to anticipate a reversal or coming into positions primarily based on short-term value will increase slightly than broader market momentum.

The findings spotlight the dangers of aggressive leverage methods in periods of uncertainty, the place sudden corrections can quickly get rid of overextended positions.

On the time of writing, Bitcoin was buying and selling at $62,831, down 1.57% over the earlier 24 hours. The asset recorded a low of $62,600 and a excessive of $64,250 throughout the session. The entire cryptocurrency market capitalization stood at $2.17 trillion, representing a 0.87% each day decline, whereas 24-hour buying and selling quantity reached $53.23 billion, up 5.76%, in response to CoinMarketCap knowledge.

Alisa, a devoted journalist on the MPost, makes a speciality of crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.

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