Crypto derivatives: funding rate analysis and liquidations 20-26 October 2026
· CryptoPulsar AI
Report analyzes the crypto derivatives market in the week from 20 to 26 October 2026 based on data from funding rates, open interest and liquidations. It presents trader positioning on major exchanges and links to the broader macro environment.
Key points
- 24h liquidations: 107,3 mln USD (long 66,2 proc.)
- Funding BTC: 0,0091 proc., ETH 0,0044 proc., SOL 0,0100 proc.
- OI BTC: 7,52 mld USD (+0,5 proc. 24h)
- Long/short BTC 2,21, ETH 3,37, SOL 2,90
- BTC 80 232 USD (-2,92 proc. 7d), dominance 58,05 proc.
Numbers of the week
- BTC: 80232.0 USD, 7d -2.9%, 30d -4.4%
- ETH: 2326.59 USD, 7d -4.5%, 30d -13.2%
- SOL: 101.29 USD, 7d -3.9%, 30d -15.5%
- BNB: 739.72 USD, 7d +1.8%, 30d -4.1%
- XRP: 1.29 USD, 7d -1.9%, 30d -16.4%
Stocks, dollar and gold (7 days)
- S&P 500: 7623.68, 7d -1.0%
- Nasdaq 100: 28957.527, 7d -2.0%
- CBOE Volatility Index: 19.71, 7d +9.0%
- US Dollar Index: 101.878, 7d +0.0%
- US 10Y Treasury Yield: 4.988, 7d -2.2%
- Gold (XAU/USD): 4013.8999, 7d -3.8%
- Crude Oil (WTI): 101.05, 7d +3.8%
Crypto derivatives in brief
In the week from 20 to 26 October the derivatives market showed moderate activity with neutral sentiment. Funding rates on Binance remained at a low positive level for BTC, ETH and SOL. BTC open interest amounted to 7,52 mld USD with a slight daily change of +0,5 percent.
Liquidations in 24 hours reached 107,3 mln USD, with the long side accounting for 66,2 percent. The total is based on data from three exchanges, which means the minimum value.
Funding: who pays for leverage
BTC funding rate at 0,0091 percent and ETH 0,0044 percent indicate a slight advantage of long positions. SOL reached 0,0100 percent, the highest among the three main assets.
Positive funding means that holders of long positions pay shorts. The values remain low, which suggests no strong speculative pressure in this period.
Liquidations: how much and on which side
In the 24h window 107,3 mln USD were liquidated, of which 70,99 mln USD concerned long positions. The largest single liquidation is 6,97 mln USD on ETH on the long side.
On an hourly basis short liquidations dominated, while in 24h longs prevailed. Data comes from binance, bybit and okx and constitute the lower bound of the actual value.
Long versus short
BTC long/short ratio amounted to 2,21 (68,8 percent long), ETH 3,37 (77,1 percent long) and SOL 2,90 (74,3 percent long). Traders on Binance Futures clearly preferred the long side.
Such a position structure increases the market's vulnerability to declines when the price moves down and triggers a cascade of long liquidations.
Open interest and leverage
Open interest BTC reached 7,52 mld USD, ETH 5,43 mld USD, and SOL 887 mln USD. Daily changes were small and ranged from +0,5 percent to +3,7 percent.
Stable or slightly rising OI with a simultaneous price decline suggests that new positions were opened mainly on the long side, which may strengthen liquidation pressure with further downward movements.
Bitcoin, Ethereum and Solana separately
BTC oscillated around 80 232 USD with a weekly decline of 2,92 percent, with dominance at 58,05 percent. ETH fell by 4,49 percent to 2 326,59 USD, and SOL by 3,91 percent to 101,29 USD.
On SOL funding was the highest among the three assets, which indicates a relatively greater propensity to maintain long leverage in this instrument.
Where derivatives may accelerate the move
High share of long liquidations with a simultaneous decline in S&P 500 by 0,99 percent in the week and an increase in VIX by 8,96 percent suggests a connection between traditional market sentiment and cryptocurrencies. Positive funding and long dominance may amplify moves in case of breaking key price bands.
Outflow from exchanges 648 mln USD with inflow of 250 mln USD indicates accumulation outside platforms, which may limit supply in the short term, but does not change the leverage structure on derivatives.
Conclusions
- High long/short ratio on ETH (3,37) with a simultaneous 4,49 percent price drop over the week increases the risk of further long liquidations.
- Positive funding at 0,0091 percent for BTC with neutral sentiment suggests that the market is not overheated, but the position structure remains one-sided.
- Liquidations of 107,3 mln USD in 24h with long dominance (66,2 percent) correlate with the weekly decline in stock indices and rise in VIX.
- Stable BTC OI with capital outflow from exchanges indicates that leverage remains mainly on futures contracts, not on the spot market.
- The largest ETH liquidation (6,97 mln USD) and high share of this asset in 24h liquidations (30,3 mln USD) shows that Ethereum was the most vulnerable to forced position closures.
Scenarios
- Bullish: Decline in funding rates below 0,005 percent with simultaneous increase in OI and decrease in long/short ratio May indicate a reduction in liquidation pressure and more balanced positioning, which favors price stabilization.
- Bearish: Continuation of long/short ratio growth above 3,0 with further outflows from exchanges Indicates increasing one-sidedness of the market and greater risk of cascading liquidations on the next downward move.
- Sideways: Maintaining funding rates in the 0,004-0,010 percent range with stable OI and no cascades Suggests balance between sides and limited price fluctuations in the near term.
What to watch next week
In the coming weeks, it is worth monitoring funding rate levels on Binance and changes in the long/short ratio, as well as leverage clusters around 80 000 USD for BTC and 2 300 USD for ETH, which may trigger liquidation cascades.
Risks to watch
- Sudden increase in long/short ratio above 3,5 with simultaneous price decline
- Rise in VIX above 22 with further outflows from BTC and ETH ETFs
- Change in funding rates to negative with rising OI, which may signal a reversal in sentiment
- Concentration of liquidations on ETH and SOL with no cascade on BTC
Frequently asked questions
What does positive funding rate mean?
Positive funding rate means traders with long positions pay a fee to traders with short positions every eight hours.
Why is long/short ratio above 2,0 important?
High long to short ratio shows most traders expect price growth, which increases risk of mass liquidations on a drop.
How do liquidations differ from a cascade?
Liquidations are single position closures, while a cascade is a series of linked liquidations that amplify price movement in one direction.
How does open interest affect volatility?
Rising open interest with one-sided positioning can increase move strength when price breaks levels with high leverage concentration.
Why are liquidation data a minimum value?
Data come from only three exchanges and cover perpetual contracts only, so the actual value may be higher.
What does BTC dominance at 58 pct. show?
Dominance at this level means Bitcoin accounts for over half of market capitalization, which often limits altcoin move strength.