Bitcoin traders retreat: options open interest sees historic drop as market sentiment deteriorates

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The historic drop in Bitcoin options open interest (OI) indicates that the current market sentiment is shifting and investors are becoming more cautious. This change reflects the dual impact of macroeconomic uncertainty and recent price volatility, and traders are avoiding high leverage positions and adopting more conservative trading strategies.

Background of the decline in Bitcoin options OI

According to AMBCrypto's analysis, options open interest (OI) fell from $40 billion recently to $27 billion, indicating a significant weakening of market speculation. This change shows that traders choose to reduce risk exposure and avoid further market volatility in the face of global economic pressures (such as the Fed's interest rate hikes and strong labor market data).

The decline in options OI is often seen as a sign of declining market confidence. The OI indicator is used to measure speculative activities in the market. A sharp decline in OI usually means that the market lacks sufficient momentum and is difficult to support large-scale price fluctuations.

Bitcoin Price Trend

Bitcoin's price trend also reflects the shift in market sentiment. Currently trading at around $93,316, Bitcoin has fallen below its 50-day moving average ($97,654), suggesting a possible bearish turn in the short term. It is worth noting that Bitcoin's 200-day moving average ($72,962) remains a strong support level.

The current low trading volume (2.64K) also further confirms the market's sluggishness, and traders seem to be waiting for clearer market signals. Market sentiment is cautious, and market participants lack confidence in the future direction.

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