TechFlow News, March 5 — According to CoinDesk, data from Glassnode shows that Bitcoin's open interest (OI) has dropped to its lowest level since August last year, currently standing at 413,000 BTC (approximately $36 billion). Open interest represents the total amount of funds in unsettled futures contracts and effectively measures the leverage level within the Bitcoin market.
Since November, Bitcoin's open interest has declined from 546,000 BTC to 413,000 BTC. A significant portion of this drop is attributed to reduced open interest on the Chicago Mercantile Exchange (CME), particularly in basis trades. Over the same period, Bitcoin’s price fell from $109,000 to $78,000 before rebounding to $90,000, suggesting that the recent price recovery has been largely driven by spot market activity rather than leveraged positions.
In addition, Binance—the second-largest exchange by open interest—has seen its open interest fall to a 12-month low, just exceeding 100,000 BTC, indicating a significant reduction in retail leverage. The ratio of Bitcoin’s open interest to its market capitalization has dropped below 2%, the first time since February 2024, highlighting a clear decline in speculation and leverage.
