Risk-off sentiment hit traders on the CME on Tuesday morning after the record 19-day net inflow streak for U.S. spot Bitcoin exchange-traded funds came to an end. Offshore crypto participants remain “heavily exposed,” increasing the potential for near-term long squeezes ahead of key macro events this week, according to K33 Research.

Leverage in bitcoin perpetual contracts has climbed to yearly highs of 260,000 BTC after a steady two-week uptrend, K33 Senior Analyst Vetle Lunde and DeFi analyst David Zimmerman said in a Tuesday report.

“Bullish traders from the past two weeks are currently underwater, with notional open interest having climbed by 32,000 BTC since bitcoin last traded at current prices,” they said.

Traders on the CME de-risked following $64.9 million in net outflows from …