Bitcoin has experienced a steep decline, falling 16.8% to approximately $75,000 after a recent high near $90,600. Market data indicates this sell-off was accompanied by significant deleveraging, with open interest falling sharply since late January. Analysts note this reflects extreme forced position closing, though a technical price bounce remains possible if open interest stabilizes.
Bitcoin faced intense selling pressure over the past week, declining nearly 17% from a local high of over $90,000. This drop occurred in under five days, highlighting significant market stress.
Data from CoinGlass shows speculative interest, measured by open interest, has been in a downtrend since September 2025. A brief spike in positive sentiment at the start of the year reversed into a continued decline by mid-January.
The falling open interest reflected increasing malaise among speculators, who grew unconvinced of a recovery. Heavy liquidation volume since October punished leverage traders attempting to position for higher prices.
Crypto analyst Axel Adler Jr. observed that current market conditions reflect “extreme deleveraging.” The Open Interest Momentum Index values fell significantly below the 90-day norm.
The analyst noted this is typical for “forced leverage compression and position closing.” However, it was not a complete derivatives washout, as funding rates remained positive.
This leaves the possibility for a technical price bounce. A sustained recovery, however, would require open interest to stabilize first.
