• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Bitcoin Open Interest Increase and Its Market Impact

user avatar

by Giorgi Kostiuk

2 months ago


Bitcoin's Open Interest rose to $27.9 billion, indicating increased leveraged market activities.

Current State of Bitcoin Open Interest

Bitcoin's Open Interest increased to $27.9 billion, indicating a surge in leveraged market activities. This rise followed a significant pump of $3.3 billion, equivalent to a 13% increase. In the past, increases in Open Interest have led to unpredictable price changes, as seen on February 20 and March 4. Traders are advised to manage risk due to the leveraged-driven pump.

Bitcoin's Current Trading Price

At the time of writing, Bitcoin seemed to be maintaining a trading price of around $83k. However, high leverage could potentially lead to market liquidations. A decrease in long positions could trigger a rapid price pullback towards the $70,000 to $80,000 range. In the past, when Open Interest exceeded 10%, the price fell by 5-8%. Similar trends were observed on February 22 and March 6. Current market conditions create opportunities for short sellers to profit from possible liquidations.

Investor Reaction to Weak Demand

A significant decrease in BTC demand was observed from December 2024 to March 2025. Bitcoin trading experienced a low annual demand of -100k BTC in mid-March 2025 after reaching a peak demand of 105k Bitcoin in early December 2024. The downturn in market value, along with a negative demand zone structure, indicated strong investor caution. The situation worsened as the 30-day sum held positions below the demand line while BTC’s price dropped from 105k to about 77k. Investors are shifting their investments to safer assets amidst these uncertain times as Bitcoin's price and market demand decline. This suggests that BTC holders of long positions could face significant risks as market conditions seem to lay the groundwork for a potential bear market. If the price falls below the $80K level and demand turns negative at -100k, the market could expose leveraged long position holders to forced sell-offs. This could result in substantial losses for holders, as analysis indicated bearishness when demand remained below -100k since last December.

Bitcoin investors show caution due to the rise in open interest and weak demand, potentially leading to further price declines.

0

Share

Other news

ChatGPT GitHub Connector: A New Tool for Developers from OpenAI

OpenAI has introduced a new feature for ChatGPT that allows code analysis on GitHub. Discover the details of the launch and its benefits.

user avatarGiorgi Kostiuk

2 minutes ago

Cryptocurrency Industry Transformation: Opportunities and Challenges

HTX Ventures report analyzes key trends and opportunities in the cryptocurrency market amid global changes.

user avatarGiorgi Kostiuk

2 minutes ago

Cryptocurrencies in May 2025: Cardano and Ethereum Activity, Unstaked's New Achievements

In May 2025, there is a rise in the cryptocurrency market activity, particularly with Cardano and Ethereum, while Unstaked launches unique...

user avatarGiorgi Kostiuk

3 minutes ago

Coinbase Completes $2.9 Billion Deal to Acquire Deribit

The deal between Coinbase and Deribit worth $2.9 billion transforms the landscape of crypto derivatives.

user avatarGiorgi Kostiuk

4 minutes ago

Wellgistics Health Transforms Healthcare Payments with XRP

Wellgistics Health initiates a $50 million XRP-based project to enhance payment processes in healthcare.

user avatarGiorgi Kostiuk

5 minutes ago

Kimchi Premium: Why It’s Currently Neutral?

An analysis of the Kimchi Premium and its impact on Bitcoin prices in South Korea.

user avatarGiorgi Kostiuk

6 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.