🔻 Reduction in Open Interest Could Put Bitcoin at Risk! 🔻

Since 2020, Open Interest in the Bitcoin futures market has shown impressive growth, surpassing the $42 billion mark. This increase reflects the growing interest in leverage among investors, particularly on major exchanges.

Currently, the CME (Chicago Mercantile Exchange) dominates 26.3% of all positions, while Binance controls 20.2% of the market. An interesting trend we’ve observed is that, generally, when the price of Bitcoin rises, the open interest also tends to increase.

However, when we analyze the 180-day or annual delta of open interest across all exchanges, we notice that the market appears to have cooled off, reminiscent of what happened in 2021. The resistance at $38 billion in open interest represents a significant challenge in the short term.
Understanding institutional interest will be crucial for Bitcoin to resume its upward trajectory. If the Annual Open Interest Delta enters negative territory, it may indicate that the market is undergoing a bearish process due to a lack of institutional interest.

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