reported that open interest in Bitcoin derivatives fell about 31% since October, a decline over the past three months that reduced leverage and helped purge excess risk in Bitcoin markets. The move has improved the market structure and is viewed as bullish by some analysts.
The drop was called “deleveraging signal” by the analytics firm, and crypto analyst Darkfost said “Historically, they have often marked significant bottoms, effectively resetting the market and creating a stronger base for a potential bullish recovery,” in the post. He warned that if Bitcoin falls into a full bear market, “open interest could contract further, signaling deeper deleveraging and a potential extension of the correction.”
Open interest measures the number or value of unsettled derivatives contracts. Deleveraging unwinds risky positions and reduces the risk of cascading liquidations.
Open interest hit about $15 billion on Oct. 6 during last year’s speculative surge. On Binance, OI peaked near $5.7 billion in November 2021, meaning OI nearly tripled in 2025.
Data shows total Bitcoin open interest across exchanges sits near $65 billion, down roughly 28% from just over $90 billion in early October. On Deribit, the $100,000 options strike holds about $2.2 billion notional value, signaling more long call exposure than puts.
Reported commentary from Greeks Live said the derivatives market still “has not yet entered a structurally bullish phase.” During rallies with falling OI, short positions often close, removing selling pressure and supporting spot-driven gains; spot BTC has risen almost 10% since the start of the year.
