BTC Open Interest Falls to Levels Not Seen Since August

Bitcoin Open Interest Falls to Lowest Level Since August as Market Leverage Declines

Binance OI drops below 100,000 BTC, reflecting reduced speculative activity.

Bitcoin’s (BTC) open interest (OI) has dropped to its lowest level since August, currently standing at 413,000 BTC ($36 billion), according to Glassnode data. Open interest measures the total value locked in active futures contracts, serving as a key indicator of leverage in the market.

Since these contracts are priced in U.S. dollars, their value fluctuates alongside BTC’s price. To provide a more accurate measure of leverage trends, analysts often assess open interest in Bitcoin terms, which eliminates distortions caused by price movements.

Glassnode data shows that since November, Bitcoin open interest has declined from 546,000 BTC to 413,000 BTC across all exchanges. A major contributor to this drop has been the unwinding of CME open interest, particularly from basis trade positions.

Over the same period, Bitcoin’s price experienced sharp swings, falling from $109,000 to $78,000 before recovering to $90,000. This suggests that recent price action has been largely spot-driven rather than fueled by excessive leverage.

Binance, the second-largest exchange by open interest, has also seen its OI decline to just over 100,000 BTC, its lowest point in over a year. This sharp drop indicates a significant reduction in leveraged positions among retail traders, likely due to heightened market volatility.

Additionally, Bitcoin’s open interest as a percentage of its market cap has slipped below 2% for the first time since February 2024, signaling a broad shift toward a less speculative, more spot-driven market structure.