Amidst recent market shake-up, Bitcoin sees a $7.4 billion dip in open interest while funding remains firm. We analyze current market sentiment and potential implications for traders.
Open Interest Decline Across Major Exchanges
Total open interest, the measure of all open futures contracts' value, dropped by $7.4 billion over the past 7 days according to Alphractal. While major exchanges contribute to the decline, Bitfinex saw a minor increase, indicating some traders shifting their positions there.
Positive Funding Rates Despite Liquidations
Funding rates, the usual payments between long and short traders, remained positive despite sharp open interest decline. This suggests ongoing bullish sentiment with most remaining positions being long.
BTC Price Correction After Topping $100K
Bitcoin corrected after peaking above $100,000, trading at $82,418.89 as of March 30, 2025. While it's below the upper pricing band, it remains above the mean MVRV band, signifying potential consolidation after the rally.
Large liquidations due to high volatility caused recent sudden price movements. However, longs maintain their stance. Data indicates the market is adjusting post-rally with leverage resetting, and traders may be preparing for the next phase.
