Bitcoin Open Interest Drops 35% from Peak... Trading Sentiment Weakens

Bitcoin (BTC) open interest (OI) has decreased by 35% from its all-time high.

According to on-chain data provider Glassnode on the 21st (local time), when Bitcoin hit an all-time high of $109,000 in January this year, the open interest was about $57 billion, but it has recently decreased to around $24.5 billion. Along with this, the Hot Supply (coins held for less than a week) ratio also decreased by more than 50%, from 5.9% of the total circulation to 2.8%, indicating a reduction in short-term circulating supply.

Spot ETF funds are also on the decline. Some contracts of the Chicago Mercantile Exchange (CME) Bitcoin futures are expiring, and with the outflow of ETF funds, downward pressure on prices seems to be acting. The inflow to spot exchanges also plummeted from an average of 58,600 BTC per day to 26,900 BTC, significantly reducing liquidity within exchanges.

Amidst this weakening trading sentiment, Bitcoin is testing an important support level around $84,000. Cryptocurrency analyst Unknown Trader believes that Bitcoin needs to hold above $85,000 to maintain its upward trend.

Meanwhile, Bitcoin is trading at around $84,200 on the Binance Tether (USDT) market, down 0.5% from the previous day.