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

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.

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.