The post Bitcoin Open Interest Takes A Notable Hit, Are Traders Losing Confidence In BTC? appeared on BitcoinEthereumNews.com.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure The beginning of this week has turned out to be bullish for Bitcoin after several weeks of robust volatility, which constrained its price below the $90,000 level. Although BTC’s price has briefly gained upside movements, there is potential for a pullback as its Open Interest shows significant weakness. A Sharp Drop In Bitcoin’s Open Interest Bitcoin’s market dynamics could be taking a drastic turnaround as several key metrics display a negative trend. These metrics’ waning performance in conjunction with recent price fluctuations raises the risk of BTC witnessing a further decline to key support levels. As prices see a slight upswing, Alphractal, an advanced on-chain data and investment platform, has reported that Bitcoin’s Open Interest (OI) has witnessed a sharp decline. BTC’s open interest decline signals a shift in market sentiment as investors withdraw their positions in the face of continued volatility. Furthermore, this decrease in open interest, which typically serves as a sign of speculative activity, is likely to lead to price fluctuations in the short term since leverage is being reduced. With the metric decreasing, determining BTC’s next price becomes difficult, causing investors to adopt strategic approaches. BTC open interest descending | Source: Alphractal on X Data from the on-chain platform shows that the open interest fell by over $7.4 billion in the last 7 days. This drop was recorded among all crypto exchanges except for the Hong Kong-based trading platform Bitfinex, which experienced a slight increase. Alphractal also highlighted the massive liquidation of leveraged positions, triggering  Monday’s volatility. Should this trend continue, confidence among derivatives traders would drop, influencing BTC’s short-term price prospects. While Bitcoin’s open interest has declined sharply, the aggregated funding rate is still in positive territory in spite of these sell-offs.…

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Filed under: News - @ April 2, 2025 4:23 pm