Darkfost2026-11-12

Binance’s highest liquidations since 2021 signal a fresh wave of deleveraging

In less than a month, BTC open interest on Binance has fallen from $10.6 billion to $8.8 billion, a decline of 17%. Meanwhile, its 180-day moving average has risen from $8.4 billion to $8.6 billion. A new deleveraging signal is emerging as open interest falls below its moving average. During bullish phases, this signal often appears toward the end of corrections. It reflects a reduction in leveraged exposure as traders either close their positions voluntarily or are liquidated. Outside bear markets, when this process can last several months, a similar signal appeared in June, when BTC was trading below $60 000. A rebound above $87 000 followed, representing a gain of more than 45%. The current decline in open interest comes amid substantial liquidations. Low volatility appears to have encouraged some traders to take greater risks to compensate for smaller price movements, leaving them more exposed to market reversals. The past three months recorded the highest monthly liquidation totals on Binance since 2021. August holds the record at more than $1.4 billion, followed by September at $1.1 billion and October at $1.3 billion. November appears to be continuing this trend, with liquidations already exceeding $520 million before the second half of the month. These figures highlight the losses leverage can inflict on traders. In a market characterized by low volatility and thin trading volumes, increasing exposure out of impatience can quickly become costly. These deleveraging phases can, however, improve market conditions. Reducing leveraged positions lowers the risk of cascading liquidations and can give spot demand a greater role, helping build a stronger market structure for Bitcoin.