Bitcoin shorting is gaining traction as traders increase bearish positions amid tightening liquidity and macroeconomic volatility. Leverage ratios are rising, with momentum indicators showing increased bearish sentiment. A notable trader reportedly secured over $22 million in profits from shorting Bitcoin. The market is on edge ahead of the Bank of Japan meeting, a known catalyst for Bitcoin sell-offs. Derivatives are leading market flows, with the spot-to-derivatives volume ratio hitting a three-month low, indicating that leverage rather than demand is driving the current market dynamics.