Bitcoin Traders Pile Into Longs as BTC Drops Below $88K, Kraken Reports
As Bitcoin (BTC) tumbles to its lowest level in three months, traders on Kraken are increasing their bullish bets, signaling confidence in a potential rebound, according to Alexia Theodorou, head of derivatives at Kraken.
BTC briefly slipped below $88,000 amid broader market turmoil. Nasdaq futures continued their losing streak, while the Japanese yen—often seen as a safe-haven currency—remained strong, reinforcing risk-off sentiment across global markets.
Monday’s decline was preceded by a $1 billion surge in open interest on Binance futures, suggesting traders were heavily shorting BTC in anticipation of further downside.
However, data from Kraken indicates some traders are seeing this as a buying opportunity. The exchange’s perpetual futures long-short ratio has surged to 0.8, its highest level ever recorded.
“Despite Bitcoin’s price breaking below $90K, Kraken’s perpetual markets have seen a significant increase in long positions,” Theodorou told CoinDesk. “The long-short ratio has reached a record ~0.8, while open interest is now at a four-week high. This suggests traders are looking to capitalize on the dip.”
While the increased demand for long positions hints at growing bullish sentiment, the overall market remains net short, leaving room for further volatility.
“Even with rising long positions, the presence of leverage means a potential long squeeze could trigger additional downside before a true recovery sets in,” Theodorou cautioned.
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