In recent months, Bitcoin's open interest (OI) in derivatives markets has notably decreased, dropping by 31% since October, according to CryptoQuant. This decline is interpreted as a sign of deleveraging, which helps eliminate excess risk in the market. The current OI stands at approximately $65 billion, down from more than $90 billion earlier in October.
The reduction in OI is viewed as potentially bullish, as it may signal a reset in market conditions that could support a recovery. Analysts have pointed out that similar patterns in the past have marked significant market bottoms. However, there are concerns that if Bitcoin continues its downward trend, the OI could decrease further, indicating a deeper deleveraging process.
Historically, open interest surged during speculative periods, with an all-time high exceeding $15 billion recorded on October 6, 2022. While the current market dynamics show a rise in spot prices, with Bitcoin gaining nearly 10% since the year's start, it is clear that derivatives markets have not yet entered a bull phase.