Open interest in Bitcoin derivatives markets has dropped by 31% since October, signaling a deleveraging trend that could lead to a bullish market structure. Deleveraging helps reset the market, potentially setting the stage for a recovery, but continued decline in Bitcoin price may deepen the correction.

Last year saw a surge in Bitcoin open interest, reaching a record high of $15 billion in October 2025. The tripled open interest compared to the previous bull market peak in 2021 indicates a significant increase in speculative activity in the derivatives market. Price rally with declining open interest may indicate a short squeeze scenario.

Total Bitcoin open interest is currently around $65 billion, down 28% from the peak in October. Deribit Bitcoin options markets show bullish sentiment, with highest open interest at the $100,000 strike price. Despite the recent surge, derivatives market has not yet entered a structurally bullish phase, according to crypto derivatives provider Greeks Live.

Read more at CoinTelegraph: Bitcoin Open Interest Falls 31% In Bullish Deleveraging Signal