BTC open Interest Slides to 6-month low: What’s Next?
Antara Bhattacharyya
BTC Open Interest Hits Lowest in 6 Months: BTC open interest drops sharply, signaling reduced speculative activity as traders close leveraged positions amid market uncertainty and profit booking.
Price Volatility Fades as Liquidity Cools: Lower open interest leads to declining volatility, with Bitcoin price movement slowing down and fewer aggressive leveraged trades influencing market direction.
Whales Accumulate During Calm Market Phase: Large holders quietly accumulate BTC during the cooldown phase, taking advantage of weak market sentiment and lower exchange liquidity.
Funding Rates Turn Neutral After Reset: Funding rates stabilize as the leveraged market resets. Neutral rates indicate balanced long-short activity and a healthier market structure.
BTC Outlook: Return of Momentum Expected Soon: If spot demand strengthens and ETF inflows pick up, open interest may rebound and renew bullish momentum toward upcoming price catalysts.