Bitcoin derivatives open interest falls about 31%, seen as deleveraging

Open interest in Bitcoin derivatives has declined about 31% since October, a trend the on-chain analytics provider CryptoQuant described on Wednesday as a "deleveraging signal" that could be bullish for the market structure. OI refers to the number or value of crypto derivatives contracts that have yet to be settled and remain "open." Deleveraging is the unwinding of risky positions, reducing the risk of cascading liquidations that could trigger sharp price drops, as was seen in the Oct.

10 crash. Crypto analyst "Darkfost" was quoted saying, "Historically, they have often marked significant bottoms, effectively resetting the market and creating a stronger base for a potential bullish recovery." He added the same dynamic could recur but cautioned that if Bitcoin (BTC) continues to slide and fully enters a bear market, "open interest could contract further, signaling deeper deleveraging and a potential extension of the correction." The report noted open interest surged in 2025 during a derivatives "speculative frenzy," with Binance OI reaching an all‑time high of over $15 billion on Oct.

6 — nearly triple the $5.7 billion peak on Binance in November 2021. Bitcoin OI across all exchanges and all derivatives is about $65 billion, CoinGlass said, down roughly 28% from a just‑over‑$90 billion peak in early October.

Key Topics

Crypto, Bitcoin, Open Interest, Cryptoquant, Binance, Deribit