Bitcoin Lost $12B in Futures, Now the Market’s Bracing for What Comes Next
The post Bitcoin Lost $12B in Futures, Now the Market’s Bracing for What Comes Next appeared on BitcoinEthereumNews.com.
TLDR: Bitcoin’s open interest plunged $12B in a week, marking one of the largest futures contractions this year. Funding rates briefly turned negative during Friday’s sell-off before stabilizing in modestly positive territory. Bitcoin’s leverage ratio dropped to levels unseen since 2022, showing mass deleveraging across exchanges. Stablecoin supply ratio fell to April lows, signaling increased buying power waiting to re-enter the market. The crypto market lately faced one of its sharpest pullbacks in recent memory. Bitcoin’s price correction wiped billions from leveraged positions and sent traders scrambling to reduce risk. It’s the kind of reset that shakes confidence in the short term but may set the stage for future recovery. Market watchers are now debating whether this shakeout marks the end of overheated speculation or the start of a new accumulation phase. Data shared by CryptoQuant shows Bitcoin’s open interest plunged by $12 billion in a week, sliding from $47 billion to $35 billion. The sudden decline points to widespread liquidation of leveraged bets after prices hit recent highs. Analysts say this is one of the steepest drops in open interest seen in months, signaling deep stress in derivatives markets. According to on-chain analyst EgyHash on CryptoQuant, the event “reset leveraged positioning across the board.” He added that such cleanouts often clear the way for healthier market structures and eventual uptrends once volatility cools. Bitcoin’s Biggest Reset: Pain Today, Gain Tomorrow? “The recent capitulation has effectively reset leveraged positioning across the board. Historically, such large-scale deleveraging events have often preceded significant uptrends in the long term.” – By @EgyHashX pic.twitter.com/foCGdwOniE — CryptoQuant.com (@cryptoquant_com) October 13, 2025 Bitcoin Leverage and Funding Rates Show Market Reset Funding rates, which track the cost of holding leveraged futures, briefly flipped negative during Friday’s sell-off. That move suggested traders were paying a premium to short…
Filed under: News - @ October 13, 2025 10:28 am