Bitcoin News

Story: Bitcoin Open Interest Drops 35%: Impact on BTC Price

By Maheen Hernandez

1 / 8

Bitcoin has struggled to reclaim its previous all-time high (ATH) of over $109,000, staying below the $90,000 mark for nearly two weeks.

2 / 8

One significant development influencing the market is a 35% drop in Bitcoin's open interest, which has fallen from $57 billion to $37 billion since the ATH.

3 / 8

The drop in open interest also indicates that traders may be unwinding cash-and-carry trades, where they previously profited from price differences between the spot and futures…

4 / 8

In addition to the drop in open interest, another key on-chain metric, the "Hot Supply," has seen a significant decline.

5 / 8

Exchange inflows have also dropped significantly, falling by 54% from 58,600 BTC per day to 26,900 BTC.

6 / 8

As of now, Bitcoin is trading around $86,225, trying to maintain support above the $85,000 level.

7 / 8

On a more positive note, CryptoQuant analyst Woominkyu highlighted a potential accumulation phase among U.S. institutional investors.

8 / 8

In conclusion, while Bitcoin is facing downward pressure from declining open interest and other on-chain metrics, there are still positive signals suggesting that institutional…

The Currency Analytics

Want the full story?