Bitcoin Leverage Cools as Miners Show Caution
Bitcoin's rebound towards its May highs has been driven by leverage rather than spot demand. As Bitcoin retested $82,000, Binance Open Interest (OI) jumped nearly 8% within 24 hours and briefly exceeded $10 billion.
The increase in OI propelled Binance's overall OI dominance to 37.1%, focusing even more leverage on one exchange. This could amplify price movements via liquidations much faster.
However, BTC fell under $80,000 after Binance's OI cooled off to $9.67 billion, indicating some unwinding of excess leverage. This reset may improve the rally's structure by reducing liquidation risk.
The Miners' Position Index (MPI) sits near neutral at -0.036, showing miners are neither aggressively distributing nor accumulating through exchange transfers. Persistent neutral MPI would support stabilization, while another sustained move above 2.0 could introduce fresh supply and weaken recovery attempts.