Binance derivatives markets saw a sharp leverage reset on June 17.

Bitcoin open interest on Binance dropped from $4.51 billion to $3.7 billion, wiping out roughly $810 million in leveraged exposure.

The decline represents an approximate 18% contraction and marks one of the clearest short-term reductions in BTC derivatives positioning on the exchange.

Ethereum showed an even sharper percentage decline.

Binance ETH open interest fell from $2.8 billion to $2.1 billion, removing about $700 million in open positions.

The current level is close to the range last seen in late February, suggesting that ETH leverage has been reset more aggressively than BTC on Binance.

The move came as the Federal Reserve held interest rates at 3.75%. Although the decision removed one layer of uncertainty, derivatives traders appeared unwilling to maintain heavy leveraged exposure through the announcement and the volatility that often follows major macro events.

This was not only a Bitcoin-specific move. The simultaneous decline across both BTC and ETH suggests a broader reduction in risk appetite across Binance’s derivatives market.

Traders likely chose to close positions before and after the Fed announcement rather than carry leverage into a potentially volatile market reaction.

Gate.io also remained under pressure in Ethereum derivatives, with ETH open interest falling again toward the $1.9 billion area. That adds another sign that leverage reduction was not isolated to Binance alone, but part of a wider reset across major crypto derivatives venues.

For now, the data points to a clear message: derivatives traders reduced exposure aggressively around the Fed event, with Binance alone seeing nearly $1.5 billion in BTC and ETH open interest disappear in a single short-term reset.

Written by Amr Taha