Bitcoin ($BTC) futures market is undergoing massive headwinds particularly in open interest (OI). The data from Glassnode discloses that the open interest in Bitcoin futures has dipped to $34.5 billion, highlighting a wider decline in the trader positioning while price momentum is negative. The blockchain analytics provider took to social media to discuss the waning open interest in Bitcoin futures.
$BTC futures open interest sits at $34.5B. While there was a brief recovery from the $33.8B low on April 3, the broader downtrend remains intact. Futures exposure continues to unwind as traders reduce risk in response to declining price momentum. pic.twitter.com/ZX06yOCtsA
— glassnode (@glassnode) April 7, 2025
Open Interest in Bitcoin Futures Drops to $34.5B, Underscoring Rise in De-Risking Strategies
According to the data, the Bitcoin futures market has seen a staggering slide to $34.5B when it comes to the open interest. The respective open interest decline impacted both the crypto- and cash-margined contracts. Specifically, for cash-margined contracts, the open interest has dropped from $30.3B, as of March 25, to $27.4B, as of the exclusive data. This dip indicates that conventional market members are cautious and de-risking their portfolios.
In the meantime, the crypto margined contracts demonstrate a plunge from $7.5B to nearly $6.9B. However, over the recent 48 hours, a slight rebound has taken place in crypto-margined exposure. This points toward a renewal of interest from relatively speculative traders endeavoring to resume riskier strategies. Hence, the crypto-margined contracts currently denote 20.5% of the cumulative open interest in Bitcoin futures, rising from 18.9% seen 2 days back. Thus, the crypto-collateralized leverage’s growing share unveils improved reflexivity into the overall market.
Increased Volatility Leads to Growth in Market Uncertainty
As per Glassnode’s data, this dynamic could result in relatively abrupt and sheer price movements, specifically if Bitcoin remains ineffective in reclaiming upward momentum in the short term. With the present trend signifying decreased leverage and cautious sentiment, the upcoming days will play an important role in determining a short-lived bounce or a recovery following the current speculative activity.
