Bitcoin Leverage Ratio on Binance Futures Climbs to Levels Last Seen in November 2025

While Bitcoin faces sustained bearish pressure, data confirms that the leverage ratio on Binance futures has increased to November 2025 highs.

Bitcoin (BTC) has struggled to regain momentum since reaching a high of $97,939 on Jan. 14, as geopolitical tensions and market uncertainty continue to dampen investor sentiment. In the days that followed this peak, BTC closed lower in six out of seven sessions, resulting in an 8.6% drop from the January high. 

Despite this, recent derivatives data on Binance suggest that trader behavior is changing, with leverage gradually returning to the market. However, this pattern leaves the market more sensitive to sharp price movements in either direction.

Key Points

• Bitcoin has recorded six losing days out of seven since Jan. 14, now down 8.6% from its $97,939 peak.
• Amid the downturn, data confirms leverage is returning to the market, with the estimated leverage ratio climbing to its highest level since November 2025.
• Elevated leverage shows increased risk-taking and raises the likelihood of sharp price swings driven by liquidations.
• Historical data confirms that spikes in leverage have coincided with sharp upswings in Bitcoin’s price.

Bitcoin Leverage Ratio on Binance Hits November 2025 Highs

Arab Chain, an analyst at CryptoQuant, confirmed the recent increase in the leverage ratio. According to CryptoQuant data, the estimated leverage ratio climbed to roughly 0.184, marking its highest reading since November 2025. Notably, this confirms a renewed willingness among traders to take on risk after a period of more restrained positioning.

In his analysis, Arab Chain explained that the estimated leverage ratio shows how much borrowed capital traders are using to maintain futures positions. An increase in this ratio indicates that a larger share of positions relies on leverage rather than spot capital. 

He noted that the current rise points to a growing risk appetite, particularly among short-term traders and speculators. Historically, similar leverage levels have often appeared during phases of price expansion, when fresh liquidity flows into derivatives markets and helps push prices higher.

What Could This Mean for Future Price Action?

However, the analyst stressed that higher leverage introduces greater fragility into the market. Specifically, when traders rely heavily on borrowed funds, even mild price swings can lead to forced liquidations. 

As a result, periods of elevated leverage tend to increase the likelihood of sharp and sudden price movements. In this environment, both strong rallies and abrupt pullbacks can become more intense as liquidations accelerate market moves.

However, Arab Chain warned against seeing the rising leverage ratio as a negative signal on its own. Instead, he emphasized that it may be part of a broader transition from caution toward renewed confidence. 

If Bitcoin continues to move sideways without experiencing steep declines, the existing leverage could act as fuel for a renewed upward move. On the other hand, if price momentum fades, the market may face additional rounds of deleveraging before the larger trend resumes.

Historical Context

Historical data further confirms the close relationship between leverage and price action. Chart data shows that spikes in the estimated leverage ratio have frequently occurred alongside rises in Bitcoin’s price, while declines in the indicator have tended to coincide with price drops.

In early June 2025, the leverage ratio hovered around 0.165 as Bitcoin traded between $108,000 and $110,000. When Bitcoin slipped below $100,000 in late June, the ratio fell to about 0.15. 

The subsequent recovery in July, which saw Bitcoin climb toward $120,000, occurred alongside a rebound in the leverage ratio to above 0.185. Meanwhile, during July’s consolidation phase, with prices holding between $118,000 and $120,000, the indicator remained relatively stable in the 0.17 to 0.18 range.

However, the conditions changed in early October 2025, when the leverage ratio dropped to 0.145. Soon after, Bitcoin’s price fell to around $106,000 by mid-October and then declined further to a low of $80,000 by November 2025.

Since reaching that bottom, both the leverage ratio and Bitcoin’s price have trended upward. Specifically, as the indicator continues its gradual rise, Bitcoin has recovered from the $80,000 low and is now trading at $89,450, though price swings remain pronounced.