Bitcoin’s derivatives market is showing a sharp rise in leverage even as spot prices face intense pressure. Glassnode data highlighted that open interest climbed by roughly $1 billion during a recent selloff, with an additional $500 million added in the latest trading session. Funding rates cooled during the initial decline but have begun rising again, indicating that traders are re-establishing long positions in anticipation of a rebound.
The broader correction has been amplified by forced liquidations. Approximately $1.49 billion in crypto positions were liquidated within 24 hours during one volatile stretch, with about $1.29 billion—or 86.8%—coming from long positions. U.S. spot Bitcoin ETFs also recorded $643.3 million in net outflows on October 30 and another $398.6 million on November 2. Security concerns surrounding platforms such as Binance added to the cautious mood, while macro pressures from Federal Reserve rate expectations, inflation data, and Treasury yields reduced appetite for risk assets.
Glassnode’s November 4 report identified $77,700 as Bitcoin’s True Market Mean and placed the short-term holder cost basis near $75,700. The Short-Term Holder MVRV stood at about 1.02, meaning recent buyers are near break-even. Analysts note that reclaiming the $79,000–$80,000 zone and the 30-day moving average near $81,319 would be an early sign of strength, while a sustained move below the short-term holder cost basis could increase selling pressure.
