TL;DR
- The total Bitcoin Open Interest has fallen to levels not seen since April 2025, signaling a massive deleveraging of the market.
- The market is dominated by “Extreme Fear,” with the Fear & Greed Index stalled at 19 points.
- The Coinbase premium has disappeared, suggesting an exit of U.S. retail interest.
The Bitcoin derivatives market is experiencing a sharp cool-down, with BTC Open Interest (OI) plummeting to its lowest level since April 2025. This market drama follows a series of massive liquidations that ultimately wiped out long positions accumulated over the past three months. Consequently, traders are operating with extreme caution.
The deceleration in derivatives trading is the direct result of the dismantling of these leveraged positions. Currently, the Open Interest has been reduced to a total of $30 billion across traditional exchanges, plus an additional $11 billion on the CME.
This figure stands in stark contrast to the peaks recorded before the October 10th liquidation, when the CME, the main barometer for U.S. institutional interest, held over $18 billion, and Binance surpassed $16 billion.
The Disappearance of Retail Interest and Extreme Fear
The difference in the futures exit is evident. Markets that were previously “hot” lost their interest faster, though Binance still retains the dominant position in terms of total volume. This low activity aligns with a period of Extreme Fear in the market.
According to the Bitcoin Fear & Greed Index, the metric has slightly risen to 19 points from a recent low of 11, but the persistent caution translates into a lower probability of traders assuming new long positions.
The exit of long positions suggests that BTC has lost its long-term bullish conviction. Many positions were not only liquidated, but others were voluntarily closed as funding rates turned negative. In fact, a large part of the BTC Open Interest at the six-month low has been rebuilt through short positions accumulating around the $88,000 level.
Bitcoin’s price is currently trading at $86,764.94, establishing a new relatively stable range, trapped between $80,000 and $90,000. Meanwhile, the Coinbase premium, which indicates U.S. retail interest, has vanished. Analysts note that the persistent weakness in the derivatives market is a sign that institutional and retail traders are awaiting a clearer directional move, either a long-term collapse or a renewal of the bullish rally.
