Crypto: Bitcoin Open Interest Falls By $55b In 30 Days: What’s Next For Btc...

Futures traders drastically reduced their activity as Bitcoin’s weakness extends and new year-to-date lows become a daily occurrence. Cointelegraph reviews traders’ BTC price expectations.

Bitcoin’s (BTC) struggle to hold above $70,000 carried on into Wednesday, raising concerns that the a drop into the $60,000 range could be the next stop. The sell-off was accompanied by futures market liquidations, a $55 billion drop in BTC open interest (OI) over the past 30 days, and rising Bitcoin inflows to exchanges.

The price weakness has analysts debating whether crypto-specific factors or larger macro-economic issues are the driving factor behind the sell-off and what it may mean for BTC’s short-term future.

Around 744,000 BTC in open interest exited major exchanges in 30 days, equal to roughly $55 billion at current prices.

BTC futures cumulative volume delta (CVD) fell by $40 billion over the past 6-months.

Crypto exchange reserves have risen by 34,000 BTC since mid-January, increasing the near-term supply risk.

CryptoQuant data noted that Bitcoin’s 30-day open interest change shows a sharp contraction across exchanges, reflecting widespread position closures, not just freshly opened short positions.

On Binance, the net open interest fell by 276,869 BTC over the past month. Bybit recorded the largest decline at 330,828 BTC, while OKX saw a reduction of 136,732 BTC on Tuesday.

In total, roughly 744,000 BTC worth of open positions were closed, equivalent to more than $55 billion at current prices. This drop in open positions coincided with Bitcoin’s drop below $75,000, indicating deleveraging as a driving factor, not just spot selling.

Onchain analyst Boris highlighted that the cumulative volume delta (CVD) data shows market sell orders continue to dominate, particularly on Binance, where derivatives CVD sits near -$38 billion over the past six months.

Source: CoinTelegraph