Bitcoin sheds 30% of its open interest: An imminent rebound?

Bitcoin Loses 30% of Open Interest: Rebound Ahead?

Open interest in Bitcoin futures has plunged since early this year. It dropped around 30% from its high in October 2025. Borrowed trading also fell sharply across these markets. Many experts view this as the close of wild speculation. It sets up a strong base for a price bounce.

A trader gazes at a screen showing -30%. A green Bitcoin arrow glows in the background.

Quick summary

Bitcoin futures open interest sank 30% from its October 2025 top. The fall points to a cleanup of risky trades. It ties to market fixes and calm periods.

Risky trade wipeout: What it means

Open interest tracks the dollar value of unsettled futures contracts. When it climbs, fresh money flows into buy or sell bets. A fast drop like now grabs attention. It shows risky positions closing. Some shut on purpose. Others face forced sales.

Bitcoin open interest hit a record above $15 billion in early October 2025. That topped the 2021 bull run peak by nearly three times. It showed huge bets in futures.

Since then, risky trading cut back over 30%. Levels now feel normal. This happened during price dips and big forced sales. Clearing these spots removes extra risk. It cuts chances of fresh sell-offs.

Bitcoin Nearing a Price Bottom?

Open interest drops like this often mark key lows in Bitcoin cycles. CryptoQuant data shows these cleanups signal bottoms. They lead to solid rebounds.

Big bets with borrowed funds spark trouble. Even small price shifts trigger sales cascades. Panic follows. Prices crash harder.

Lower open interest pulls out weak bets. It evens buyer-seller power. The market grows tough against shocks. Prices find steady ground. They can rise without new sales waves.

This cleanup hints at good times ahead. But it does not start a bull run. Market data shows trades react to moves. Prices up? Traders close bets. They skip new ones.

Long-term holders spot a chance to buy in. Short-term players track charts. They watch mood shifts.

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