Bitcoin deleverages after $13.45B expiry, but will weak demand stall recovery at $66K?

As the markets headed for the weekend, Bitcoin [BTC] cleared $13.45 billion in contracts, removing dense short-term positioning and easing gamma constraints. As this overhang faded, the price slipped towards $65,500, reflecting risk aversion driven by geopolitical tension and extreme fear.

Source: Deribit

As pressure built, Open Interest fell by 42%, dropping from roughly 550,000 to 320,000 contracts after expiry.

This sharp contraction confirmed broad deleveraging across the board. Especially as traders closed positions, rather than triggering cascading liquidations.

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Source: Glassnode

As leverage reset, derivatives pressure declined into lower percentiles, reinforcing that speculative excess has been flushed from the system. The price then stabilized near $66,300, where buyers began absorbing supply within a cleaner, less crowded structure.

This stabilization is evidence of balance, not strength, as demand has so far been cautious under macro stress. With positioning reset, Bitcoin now enters a transitional phase where fresh flows will likely define the next volatility expansion or directional move.

Will low leverage suppress or unleash volatility?

Bitcoin’s derivatives structure reset after the 27 March expiry, leaving Futures Open Interest (OI) near $108.4 billion after a 0.58% decline. As leverage thinned, crowded positioning eased, which removed gamma constraints that had tightly pinned short-term price action.

As the OI declined, liquidation risk dropped. This typically suppresses realized volatility in the immediate post-expiry phase. This happens because fewer leveraged positions remain to trigger forced moves, allowing the price to stabilize within a calmer range.

With strikes clustered around $66,000–$67,000 and leverage rebuild still weak, Bitcoin now sits at a pivot where muted volatility can persist. And yet, any new positioning or macro trigger can quickly drive expansion.

Bitcoin in extreme fear as market awaits demand shift

Bitcoin’s post-expiry reset now shifts into a sentiment phase marked by sustained stress rather than recovery. At the time of writing, the Fear and Greed Index was holding between 11 and 12 for a third session – A sign of downside expectations.

Thanks to this caution, BTC Futures Open Interest dropped by another 3.33% to $50.06 billion – Extending the deleveraging trend. Such a sustained reduction lowers liquidation risk, but it also removes structural buffers that once softened volatility.

CoinGlass

Funding has been slightly negative, while long/short ratios hovered near parity, reinforcing weak conviction across participants. As geopolitical tension builds, this fragile positioning will leave the price increasingly sensitive to headline-driven moves.

Extreme fear alone cannot confirm a bottom without demand. If spot absorption fails to emerge, Bitcoin remains exposed to renewed volatility expansion.

Taken together, it can be argued that Bitcoin has reset its structure. However, conviction remains weak near $66,000. If spot absorption strengthens, recovery can stabilize. On the contrary, if leverage rebuilds first, volatility will likely expand, especially under macro pressure.

Final Summary

• Bitcoin [BTC] cleared $13.45 billion expiry as Open Interest fell by 42%, reducing liquidation risk but leaving the price near $66,000 with weak demand.
• Bitcoin now depends on spot absorption for stability, while leverage rebuild risks renewed volatility under macro pressure.