{"id":125366,"date":"2025-03-19T07:15:46","date_gmt":"2025-03-19T07:15:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125366"},"modified":"2025-03-19T07:15:46","modified_gmt":"2025-03-19T07:15:46","slug":"bitcoin-futures-deleveraging-wipes-10b-open-interest-in-2-weeks","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125366","title":{"rendered":"Bitcoin futures &#039;deleveraging&#039; wipes $10B open interest in 2 weeks"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin (BTC) exchanges are getting a key \u201cdeleveraging event,\u201d which should shape future gains, new research says.<br \/>\nIn one of its \u201cQuicktake\u201d blog posts on March 17, onchain analytics platform CryptoQuant revealed a $10 billion capitulation on Bitcoin futures markets.<br \/>\nBitcoin sees \u201cessential\u201d event for BTC price rebound<br \/>\nBitcoin derivatives traders have flipped firmly risk-off since BTC\/USD hit its current all-time highs in mid-January.<br \/>\nCryptoQuant, which uses data from various major crypto exchanges, calculates that aggregate open interest (OI) on futures fell by $10 billion in just three weeks from Feb. 20 through March 4.\u00a0<br \/>\n\u201cOn January 17th, Bitcoin&#8217;s open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high,\u201d contributor Darkfost writes.<br \/>\nThe drop, he argues, \u201ccan be considered as a natural market reset, an essential phase for sustaining a bullish continuation.\u201d<br \/>\nBitcoin futures OI data for top exchanges. Source: CryptoQuantAn accompanying chart shows the 90-day rolling change in aggregate OI, highlighting the severity of the market\u2019s U-turn following the all-time highs.<br \/>\n\u201cCurrently, the 90-day change in Bitcoin futures open interest has dropped sharply and now sitting at -14%,\u201d Darkfost concludes.\u00a0<br \/>\n\u201cLooking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term.\u201d<br \/>\nCrypto \u201cdemand crisis\u201d emerges<br \/>\nContinuing, fellow CryptoQuant contributor Kriptolik eyed increasingly active derivatives markets overall since November 2024.<br \/>\nRelated: Peak &#8216;FUD&#8217; hints at $70K floor \u2014 5 Things to know in Bitcoin this week<br \/>\nStablecoin reserves across derivatives exchanges are increasing, he revealed this week, even surpassing spot markets. This, however, is no recipe for price upside.<br \/>\n\u201cWhen we analyze the volume and circulation of stablecoins, which act as fuel in the market, we see that despite a rapid increase in total stablecoin supply since November 2024, this has not necessarily benefited the market or investors significantly,\u201d another blog post explains.<br \/>\nKriptolik described spot markets as suffering a \u201cdemand crisis.\u201d<br \/>\n\u201cUntil this distribution normalizes, avoiding high-leverage (high-risk) trades may be the most prudent approach,\u201d he added.<br \/>\nExchange stablecoin reserves (screenshot). Source: CryptoQuantThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-futures-deleveraging-wipes-10b-open-interest-in-2-weeks?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin (BTC) exchanges are getting a key \u201cdeleveraging event,\u201d which should shape future gains, new research says. In one of its \u201cQuicktake\u201d blog posts on March 17, onchain&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125366"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125366"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125366\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125366"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}