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Fed Cut Wipes Out Leverage as Bitcoin Supply Ratio Drops
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Fed Cut Wipes Out Leverage as Bitcoin Supply Ratio Drops
Sep 20, 2025 12:27 PM

TL;DR

Bitcoin’s exchange supply ratio fell to 0.029, showing fewer coins available for trading on Binance. Perpetual open interest dropped from 395K BTC to 378K BTC after the Fed’s rate decision. Analysts track $116.7K and $113K as key levels as Bitcoin consolidates near yearly highs.

Exchange Supply Ratio Declines on Binance

Bitcoin’s Exchange Supply Ratio (ESR) on Binance has dropped to a recent low, standing near 0.029. This metric tracks the proportion of Bitcoin supply held on exchanges. The decline comes as BTC’s price climbed toward $117,000 before it was stopped and driven south slightly.

Source: CryptoQuant Notably, the move suggests fewer coins are currently held on Binance for immediate trading. The timing is concurrent with the Federal Reserves rate cut that stirred global volatility across financial markets. A drop in ESR might broaden into holders who see this period of heightened market sensitivity as an opportunity to lower their exchange exposure.

Futures Open Interest Sees Sharp Reduction

Market observer FOUR | Crypto Spaces reported that Bitcoin’s perpetual futures open interest (OI) saw a sudden decline following the Fed’s decision.

“A cycle high in $Bitcoin Perpetual Open Interest (OI) just got ‘flushed,’” they wrote.

Glassnode data shows OI fell from about 395,000 BTC to 378,000 BTC as volatility cleared leveraged positions. Despite the reduction, the higher price moved from about $113n000 earlier in the month of September to almost $118n000. The monster of speculative leverage dropped while spot demand continued to hold prices.

Source: FOUR | Crypto Spaces/X

Analysts Track Key Market Levels

Analyst Crypto Bully noted that Bitcoin is testing important areas following the post-FOMC push. They pointed to $116,700 as a key zone where price acceptance could support further strength.

They also described $113,000 as an essential level to monitor because of its alignment with historical value areas and technical indicators. “Three different plans, three different triggers to execute them. All planned beforehand and now we wait,” they wrote, emphasizing prepared scenarios for market participants as Bitcoin consolidates above $115,000.

$BTC Finally pulling back post-FOMC push up

Deviation of key $116.7k level, acceptance above that high volume area = Push above $120k (so importance to keep this area in mind for momentum trades)

What now?

Buy dip now at 100EMA/VWAP higher band/HVN at 115.5 (trigger would… pic.twitter.com/ydoiJZj9xx

Remarkably, recent events underline Bitcoins strong response to the macroeconomic news. The time-worn OI flush accompanied the rate cut by the Fed, while the exchange supply ratio experienced a simultaneous fall. These two movements, acting in concert, indicate that fewer coins are available on exchanges and less leverage is being employed at the futures markets.

Bitcoin is trading near its yearly highs, with traders watching key levels closely. The focus is on whether momentum holds above $116,700–$117,500 or if the market slips back toward lower support.

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