Bitcoin Traders Boost Leverage Amid Sideways Trend, Spotting Rally Risk

Crypto traders are ramping up leverage despite Bitcoin's sideways price action, raising the risk of a volatility-driven rally or unwind. Since February 6, BTC has traded between $62,000 and $71,000 without a breakout. Futures basis on Binance, OKX, and Deribit widened from 1.5% to 4% annualized since February 13, signaling speculative long positioning. Aggregated funding rates also rose, per Velo data. Coinbase CEO Brian Armstrong noted resilient retail buying. The 25 Delta skew improved from -10 to -4 on Deribit, indicating reduced put demand. LVRG's Nick Ruck warns of leverage-driven rallies and short squeezes, while Tiger Research's Ryan Yoon cautions on volume disconnect and liquidation risks. As of February 16, Bitcoin trades at $68,600 after a 2.5% decline in the past 24 hours.