Bitcoin Derivatives Show Bulls Making Moves Despite $70K Sell-off

Bitcoin dropped below $71,000 on Monday for the first time in seven weeks, liquidating $276 million in leveraged bullish positions as traders reduced exposure amid renewed military action between the US and Iran. Despite the sell-off, whales and market makers increased their bullish exposure in the derivatives market.

At Binance the long-to-short ratio among top traders rose to 1.4x from 1.1x one week prior, while top traders at OKX initially expanded shorts before reversing and pushing their long-to-short ratio to 1.9x. Aggregate open interest across major exchanges held at $43.5 billion, indicating traders did not rush to close positions at a loss.

The annualized funding rate for Bitcoin perpetual futures climbed above the neutral 6%–12% range for the first time in over six months, reaching 13%, a sign of growing bullish confidence that also raises the risk of cascading liquidations if prices fall further.

United States, Iran

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