BTC Open Interest Sinks to Its Weakest Level Since August

Bitcoin Open Interest Sinks to Lowest Level Since August as Leverage Unwinds

Binance OI slips below 100,000 BTC, reflecting a shift toward spot-driven trading.

Bitcoin’s (BTC) open interest (OI) has dropped to 413,000 BTC ($36 billion), marking its lowest level since August, according to Glassnode data. OI tracks the total funds tied up in active futures contracts, serving as a key measure of leverage in the market.

Because futures contracts are denominated in U.S. dollars, their value fluctuates with BTC’s price. To provide a clearer picture of leverage trends, analysts assess OI in Bitcoin terms, filtering out price-driven distortions.

Since November, Bitcoin open interest across all exchanges has declined from 546,000 BTC to 413,000 BTC, with a significant portion of the drop linked to the unwinding of CME open interest, particularly in basis trade strategies.

Bitcoin’s price volatility over the same period—falling from $109,000 to $78,000 before rebounding to $90,000—suggests that the latest recovery has been primarily driven by spot market demand rather than leverage-fueled speculation.

Meanwhile, Binance, the second-largest exchange by OI, has seen its open interest slide to just over 100,000 BTC, the lowest in over a year. This suggests that retail traders are reducing their leveraged positions, likely in response to market uncertainty and heightened volatility.

Additionally, Bitcoin’s open interest as a percentage of its total market capitalization has fallen below 2% for the first time since February 2024, reinforcing the idea that speculative leverage is retreating in favor of a more spot-driven market structure.

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