“Leverage is gone, risk is pared,Bitcoin resets, not scared.”
If retail traders are missing, who is really holding Bitcoin at $89,900? As open interest drops to levels last seen in late 2022, the Bitcoin futures market is undergoing a significant reset, according to CryptoQuant.
The amount of money locked in active futures trades is indicated by open interest. Many traders are reducing risk and liquidating leveraged positions as a result of the steep decline.
Retail demand remains low, with small transactions under $10,000 falling on a 30-day basis, according to CryptoQuant researchers. Bitcoin is currently priced close to $89,900, up about 2% from the previous week.
Bitcoin open interest has dropped by more than 35% from its most recent peak, according to data from CryptoQuant, indicating significant deleveraging across key exchanges.
When excessive leverage was removed from the system during the 2022 bear market, similar circumstances were last observed.
Ki Young Ju, the CEO and founder of CryptoQuant, thinks that this is a unique moment. He does not anticipate a severe decline from all-time highs of more over 50%, which was typical in previous cryptocurrency cycles. Rather, he believes that in the upcoming months, Bitcoin will move sideways.
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