BTC Open Interest May Take Months to Rebuild After Historic Deleveraging, Markets Remain Cautious

  • Open interest declined about 30% after October 10, with BTC open interest around $33.83M on perpetuals and roughly $70M across all markets.

  • Hyperliquid and other perp DEXs saw open interest fall by nearly 50%, signaling rapid deleveraging in the most liquid venues.

  • Overall, BTC open interest across all markets is around $70M, indicating broader weakness in leverage and liquidity.

Bitcoin open interest signals a fragile reset; stay tuned for updates as markets recalibrate, liquidity returns, and BTC volatility stabilizes for markets.

What is Bitcoin open interest and why did it plunge in October 2025?

Bitcoin open interest measures the total value of outstanding futures contracts across its derivatives markets. After the October downturn, open interest fell by about 30%, signaling rapid deleveraging and a shift in market sentiment toward risk-off conditions. A cautious rebuilding of leverage and liquidity is underway.

How does Bitcoin open interest relate to market liquidity?

Open interest acts as a barometer for leverage and liquidity in futures markets. A sharp drop, as seen after October 10, reduces available buyers and sellers, amplifying price moves. As liquidity returns, open interest tends to rebuild, easing volatility and stabilizing BTC prices over time.

Frequently Asked Questions

What is the practical effect of open interest on BTC price movement?

In short, rising open interest often accompanies fresh capital entering the market and can sustain trends, while abrupt declines signal deleveraging and heightened volatility. After the October event, BTC price volatility rose as long liquidations increased.

Is BTC open interest rising after the October deleveraging?

The latest data show a cautious rebuilding process as liquidity returns; funding rates remain mixed and long liquidations are slowing, suggesting a potential stabilization rather than an immediate rally. Traders watch these signals closely for signs of a durable recovery.

Key Takeaways

  • Open interest declined ~30% after the October downturn: Deleveraging erased a large portion of leveraged exposure across markets.
  • Liquidity rebuild is a months-long process: Re-entry of long positions will occur gradually as risk appetite and funding dynamics normalize.
  • On-chain flows indicate caution: Binance hot wallets moving BTC to other exchanges can add near-term selling pressure.

Conclusion

Bitcoin open interest remains a critical gauge of market risk and liquidity. COINOTAG will monitor authoritative data sources, on-chain signals, and exchange flows to report timely updates on recovery prospects. Going forward, the market’s path will hinge on liquidity restoration and prudent risk management by traders.

BREAKING NEWS

BNB Chain Restores Normal Service After Outage, Official Team Confirms on October 21

COINOTAG News reports that on October 21, the official...

APRO and Opinion Forge AI Oracle Partnership to Elevate Prediction Markets on BNB Chain

COINOTAG News reports on October 21 that APRO, an...

Bitcoin Breaks $120K in 2025 as MACD Weakens and Fearful Sentiment Signals a Possible November Top

In a period of elevated volatility, Bitcoin's price movement...

COINBASE STRIKES DEAL FOR CRYPTO-INVESTING PLATFORM ECHO: WSJ

COINBASE STRIKES DEAL FOR CRYPTO-INVESTING PLATFORM ECHO: WSJ
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img