The post Bitcoin Open Interest Falls 50% Amid Year-End Trading Slowdown appeared on BitcoinEthereumNews.com.

Bitcoin’s open interest has declined nearly 50% in late 2025, dropping from over $70 billion to around $35-40 billion as institutions close leveraged positions amid year-end caution. This slowdown in trading activity and volumes signals a defensive market stance, with prices holding steady in a narrow range near $86,400. Bitcoin open interest falls 50%: Institutions unwinding positions has reduced leveraged exposure by over $30 billion across exchanges. Trading volumes ease: Centralized exchanges like Binance see softened participation despite handling significant daily flows. Price stability amid caution: Bitcoin trades at $86,400, below key moving averages, with RSI at 38 indicating limited buying pressure and data from Alphractal showing real position closures. Explore Bitcoin’s open interest decline in 2025: Why trading slows and what it means for prices. Stay informed on market shifts with our insights—subscribe for updates on crypto trends today. (152 characters) What is causing Bitcoin’s open interest decline in 2025? Bitcoin’s open interest decline in 2025 stems primarily from institutional investors reducing leveraged positions as the year draws to a close. Data from Alphractal indicates a sharp drop of nearly 50%, with over $30 billion in positions closed across major exchanges. This reflects a common year-end strategy where market participants de-risk portfolios, leading to quieter trading in futures, spot markets, and ETFs, while prices remain relatively stable in a narrow range. How has trading volume been affected by this slowdown? The decline in Bitcoin’s open interest has coincided with a noticeable slowdown in trading volumes, affecting both centralized exchanges and ETFs. On centralized platforms, overall participation has softened, even as Binance maintains dominance with daily volumes exceeding $50 billion. ETF trading has also trended lower, reaching around $39 billion in recent sessions. This reduction follows a pattern observed in previous years, where holiday periods prompt reduced activity. Supporting data…

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Filed under: News - @ December 18, 2025 12:28 am