Bitcoin open interest has experienced a significant decline of 55% from its peak of $94 billion in October 2025, now standing at approximately $44 billion, marking the largest drop since April 2023 as traders unwind leverage amid a risk-off sentiment in the market. This decline has been influenced by a combination of macroeconomic factors, including a weaker U.S. dollar and geopolitical tensions, which have led traders to become more cautious. Following a cooler-than-expected January inflation reading that briefly lifted Bitcoin above $70,000, there was a wave of spot buying, but it failed to attract new leveraged positions, highlighting a shift towards more conservative trading strategies.
Bitcoin open interest declines 55% as traders unwind leverage
