The open interest for Bitcoin (BTC) futures has dropped to $42 billion, the lowest level seen in eight months. This decline from $47 billion over the past two weeks indicates a significant flush of leverage, but does not necessarily imply bearish sentiment in the market.
Despite recent challenges, including a rejection at the $89,000 mark and the liquidation of over $260 million in leveraged positions, some metrics indicate that Bitcoin may maintain a price floor above $85,000. Investors are currently facing concerns over diminished institutional interest as a five-day outflow from Bitcoin exchange-traded funds (ETFs) totaled $825 million.
This outflow, while minor compared to the overall $116 billion in deposits, has contributed to the perception that bullish momentum is waning amid broader economic uncertainties. Market participants are awaiting catalysts that could help Bitcoin regain its footing and approach the $90,000 target.