PANews January 15 News, according to Cointelegraph, data from CryptoQuant shows that open interest (OI) in the Bitcoin derivatives market has decreased by about 30% since October last year. Analysts point out that this “deleveraging signal” helps clear the market of excess leverage accumulated. Historically, similar significant declines often mark important market bottoms, laying a firmer foundation for a potential bullish recovery. However, if Bitcoin prices continue to decline and enter a full bear market, open interest may further shrink, indicating deeper deleveraging and an extended adjustment period.
On October 6 last year, Bitcoin’s open interest reached a historical peak of over $15 billion. Currently, in a scenario where prices are rising while open interest is decreasing, it usually indicates that leveraged short positions are being closed or liquidated. This “short squeeze” situation could be favorable for Bitcoin, as the price increase is driven more by spot buying rather than excessive leverage. However, derivatives provider Greeks Live pointed out that the derivatives market has not yet entered a structurally bullish phase, and the current trading structure more resembles a passive reaction to sudden price increases.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Enters DeFi Era as Hashi Builds on Sui Blockchain
_Hashi launches on the Sui blockchain to bring Bitcoin lending, yield, and DeFi services with support from BitGo, Bullish, and FalconX institutions._
A new finance protocol called Hashi plans to bring Bitcoin into decentralized finance. The project is being built on the Sui blockchain.
LiveBTCNews20m ago
Bitcoin Rejects $76K as War and PPI Rock Markets
_ Bitcoin rejected $76,000 resistance as US strikes on Iran, hot PPI at 3.4%, and Powell’s FOMC tone sent crypto and risk assets into a sell-off._
Bitcoin hit $76,000 and turned back around. The rejection was clean. Sellers were waiting right at the level that traders had marked for
LiveBTCNews31m ago
BTC breaks through 71,000 USDT, 24-hour gain of 3.23%
Gate News: On March 23rd, market data shows that BTC broke through 71000 USDT, currently trading at 71006.7 USDT, with a 24-hour increase of 3.23%.
GateNews1h ago
Mt. Gox Transfers $500 in $BTC Following Months-Long Silence
Mt. Gox, the defunct Bitcoin exchange, executed its first transaction in four months, moving $500 in Bitcoin. This has stirred speculation about its future actions ahead of a December claims deadline for creditors, potentially impacting Bitcoin's market.
BlockChainReporter1h ago
European Bitcoin Treasury H100 Aims to Triple BTC Stash by Acquiring Two Firms
H100 Group aims to acquire Norwegian firms Moonshot AS and Never Say Die AS in an all-stock deal, increasing its Bitcoin holdings from 1,051 to 3,500 BTC. This move would position H100 as Europe's second-largest listed Bitcoin treasury firm.
Decrypt2h ago
