A sharp leverage reset swept through crypto derivatives markets on June 17–18, as Bitcoin and Ethereum traders aggressively cut exposure immediately after the Federal Reserve left its benchmark interest rate unchanged. According to CryptoQuant analyst Amr Taa, total open interest for Bitcoin and Ethereum on Binance alone evaporated by nearly $1.5 billion.
Bitcoin open interest on Binance plunged from $4.51 billion to $3.7 billion, an 18% decline that wiped out roughly $810 million in leveraged positions. Over the same 24-hour window, the daily open interest change swung from a positive $258 million to a negative $620 million, reflecting a net shift of around $878 million and signaling a sharp reversal in trader positioning.
Ethereum suffered an even steeper 25% drop, with its Binance open interest falling from $2.8 billion to $2.1 billion—a level last seen in late February. This $700 million flush pushed ETH open interest well below its 30-day average of approximately $5.58 billion; a Z-score of -0.28 on the 30-day metric indicates the reading remained within normal range but confirmed a clear cooling-off. The decline was not isolated to Binance: Gate.io’s ETH contracts also compressed to around $1.9 billion.
The synchronized unwind followed the Fed’s decision to hold rates steady at 3.50%–3.75% and a cautious policy outlook. Traders rushed to reduce risk across major assets, avoiding aggressive leveraged positions through the announcement and the heightened volatility that often accompanies such macro events. The magnitude and speed of the open‑interest contraction underscore how sensitive crypto derivatives books have become to central bank guidance.
