Bitcoin Volatility Surges as Leveraged Positions Accumulate

Bitcoin is currently experiencing significant volatility as leveraged positions accumulate across major exchanges. According to data released by The Kingfisher on June 27, 2025, a substantial long liquidation zone has formed below Bitcoin’s spot price, specifically between $105,500 and $106,400, with peak liquidation levels at $106,616.4. This data was compiled from various exchanges, including Binance, Bitfinex, OKX, BitMEX, Bybit, and Bitget.

Analysts suggest that this zone could act as a magnet if Bitcoin retraces, potentially triggering a cascade of long position liquidations. Price action briefly tested this level earlier today, dipping to $106,540 before rebounding. At press time, BTC is trading at $107,428.92, posting a modest 0.31% 24-hour gain.

The Kingfisher’s chart also highlights rising short liquidation levels above $108,000. This suggests that if BTC rallies, short positions may be squeezed, intensifying upward pressure. With both long and short liquidations building in proximity, price swings are expected to accelerate.

Data from Coinglass shows that Bitcoin futures open interest has surged toward the $100 billion mark. This jump in speculative positioning has been consistent with BTC maintaining levels above $100,000 since early 2024. A sharp rise in both price and open interest began in October and has continued into mid-2025. The open interest, represented in green on Coinglass charts, indicates an inflow of capital into BTC derivatives markets. Past correlations between falling open interest and liquidation events underscore the need for caution as leverage builds.

In a noteworthy disclosure, the Royal Government of Bhutan has accumulated over 12,000 BTC since 2020. This information, verified through on-chain data, shows holdings now valued at approximately $1.29 billion. Druk Holdings, Bhutan’s sovereign investment arm, managed the acquisitions discreetly over several years. With Bitcoin priced at $106,540 during the latest valuation, BTC now makes up nearly 40% of Bhutan’s GDP. This strategic move positions Bhutan as the world’s third-largest sovereign holder of Bitcoin. Analysts have noted the bold approach taken by the Himalayan kingdom as part of its long-term strategy in digital asset adoption.

As global interest in decentralized finance grows, Bhutan’s BTC portfolio places the country in a unique macroeconomic position, blending national reserves with blockchain-based assets. This move highlights the increasing acceptance and integration of digital currencies into national financial strategies, potentially influencing other nations to explore similar paths.