Bitcoin Traders Cut Leverage as Macro Risks Weigh on Markets

Bitcoin futures leverage drops sharply as open interest declines and funding rates flip negative amid macro pressure.

Bitcoin derivatives markets are undergoing a sharp reset as traders respond to rising macro and geopolitical pressure. Futures positioning shows a clear shift away from risk, particularly on Binance. Analyst Darkfost flagged the trend in a recent post on X, pointing to steady deleveraging across February.

Open Interest Slides as Bitcoin Traders Retreat from Risk

Data shared by analyst Darkfost in an X post points to a broad deleveraging phase. Traders are cutting back on borrowed positions in crypto derivatives as macro conditions have turned more fragile in recent weeks.

President Donald Trump announced new 10% global tariffs under Section 122. The move follows a Supreme Court ruling that struck down earlier tariffs. Administration also signaled willingness to carry out limited strikes against Iran, adding geopolitical tension.

Weaker U.S. data increased caution, with fourth-quarter growth at 1.4%, below expectations. On the other hand, core PCE inflation at 3% above forecasts. Slower growth combined with stubborn inflation creates uncertainty, which often pressures risky assets like Bitcoin.

In response, traders tend to reduce exposure, especially in futures markets where risk is amplified.

🗞️ Investors step back from leverage as uncertainty grows

Against a backdrop of rising uncertainty, investors appear to be taking precautionary measures by reducing their use of leverage across derivatives markets.

⚠️ The broader macroeconomic and geopolitical environment has… pic.twitter.com/v2jgg4AyEP

— Darkfost (@Darkfost_Coc) February 20, 2026

Against that backdrop, futures traders began cutting risk. Darkfost pointed to Binance’s BTC Estimated Leverage Ratio as key evidence. Binance remains the largest venue for BTC futures trading and accounts for more than 31% of total Bitcoin open interest, excluding CME.

Throughout February, estimated leverage ratio on Binance fell from 0.19 to 0.15. Trend continues downward. At the same time, roughly 30,000 BTC worth of open interest left the platform. Falling open interest suggests traders are closing positions rather than adding new ones.

Bitcoin futures open interest has dropped to around $22 billion, down from $40–$45 billion at its peak. That means nearly half of positions have been closed. 

Funding rates across major exchanges have turned negative, hovering near -0.017%. Shorts are paying longs, reflecting a shift away from crowded long positioning. Earlier rally phases saw persistent positive funding. Current readings suggest long bias has largely cleared.

Spot ETF Inflows Offset Cooling Futures Activity

Activity on the Chicago Mercantile Exchange shows a steadier picture. CME Bitcoin futures open interest stands around 23,800 contracts as of 20 February. Stable positioning on CME often suggests institutional investors are holding their exposure and not exiting aggressively.

Meanwhile, U.S. spot Bitcoin ETFs saw about $88.1 million in new inflows in one day. Total inflows since launch have reached roughly $54.38 billion. Funds now hold around $92.82 billion in assets, with daily trading volume near $4.27 billion.

Steady inflows while futures positions are being closed suggest long-term investors are still buying. ETF investors usually make allocation decisions, not short-term trades. That steady demand contrasts with falling futures open interest.

Darkfost argued that ongoing reduction in leverage reflects prudent positioning. Cutting exposure during uncertain periods can limit forced selling later. Market participants appear focused on preserving capital not chasing upside.

For now, futures data shows traders stepping back. Bitcoin’s next sustained move may depend less on speculation and more on clarity in growth, inflation, and geopolitical direction.