Traders Overlook Market ‘Fear’ to Increase Leverage by $2.4 Billion

In December, leveraged positions rose by $2.4 billion despite a 40% drop in trading activity.

In December, the volume of leveraged positions rose by $2.4 billion, despite a 40% decline in trading activity. This trend was highlighted by the analyst known as Crazzyblockk.

Traders Added $2.4B in Leverage During December’s Fear

“Activity collapsed by forty per cent, and whales withdrew twenty thousand Bitcoin. Professional money exited while retail leveraged up.” – By @Crazzyblockk

Read more ⤵️https://t.co/SxQP25HAQ5 pic.twitter.com/2DGG6s0hcZ

— CryptoQuant.com (@cryptoquant_com) December 29, 2025

The total open interest (OI) for Bitcoin and Ethereum futures increased by 7% — from $35 billion to $38 billion. The Fear and Greed Index during this period was at 27, with the market anticipating capitulation.

Performance metrics:

• Bitcoin’s OI rose by $1 billion (to $23 billion) with a price around $88,000;
• Ethereum added $1.4 billion — from $13 billion to $15 billion.

In the last week alone, the market saw $450 million in new leverage. Traders opened positions betting on recovery, ignoring market weakness. Increased activity was recorded on Binance, Bybit, and OKX, with Gate leading in dynamics.

Crazzyblockk described the situation as “stubborn optimism.” Funding rates remained positive — traders paid to hold longs.

However, professional investors acted differently — large holders withdrew 20,000 BTC. According to the analyst, the current picture contradicts bottom signals. A true bottom forms when the market is “cleansed” of leverage, not when it accumulates.

Back on December 29, the price of the leading cryptocurrency surpassed the $90,000 mark. Following the market leader, Ethereum’s price rose above $3,000.