Bitcoin is witnessing one of the largest leveraged position liquidations in history. Over the past 24 hours, the Aggregated Open Interest Delta recorded a decline of -$4.62 billion, marking the second-largest drop ever.
High volatility moments include the "Coinbase IPO," "China Ban," "Old OG Whale," Terra Luna dump, and the FTX collapse. However, none caused as significant a variation in positions as in the last 24 hours.
In 2024, Bitcoin was highly leveraged, with open interest peaking at $42.2 billion. It has now fallen to $28.9 billion, a 31.5% decrease. This drop suggests possible institutional position closures and forced liquidations. Historically, $10 billion has been a support level, while $26 billion marked previous peaks in 2021. $42 billion now seems to be strong resistance, with Bitcoin failing to surpass it three times in 2024.
Analyzing the Aggregated Open Interest Delta over 180 days shows a Bull Run supported by increasing money in the derivatives market. A declining influx signals a significant price correction, as seen in 2021, late 2021, and notably in 2024. Bitcoin might face a prolonged consolidation phase.
Recent volatility has been influenced by exchanges. Largest variations in open interest over the past 7 days:
Bitget: -$1.74 billion
Binance: -$1.54 billion
Bybit: -$1.48 billion
CME: -$807 million
OKX: -$508 million
Gateio: -$257 million
Kraken: -$52 million
Others: -$460 million
The $26 billion open interest level should be monitored, as it marked historical peaks in 2021 and may serve as current support. To reach this, open interest needs to decrease by around $3 billion, potentially leading to further market declines
