Bitcoin open interest volatility hits yearly low…"Approaching the Extreme Fear zone"

Source
Suehyeon Lee

Summary

  • "Bitcoin (BTC) futures open interest volatility recorded its lowest level in 2025 and was analyzed as approaching the 'Extreme Fear' zone."
  • "The indicator was stated to be used as a key indicator to capture potential market direction changes during Bitcoin price correction phases."
  • "CryptoQuant said that low points in open interest volatility tended to coincide with Bitcoin macro lows and that major reversals often occurred afterward."

Bitcoin (BTC) futures open interest volatility has recorded its lowest level in 2025 and is approaching the market's 'Extreme Fear' zone.

On the 18th (local time), CryptoBriefing reported that CryptoQuant said, "Currently, open interest volatility is approaching the Extreme Fear zone, which means that investor sentiment in the virtual asset (cryptocurrency) derivatives market has entered a bearish phase."

This indicator is a key measure used to detect possible market direction changes during Bitcoin price correction phases, and it is generally known that long-term holders (LTH) tend to accumulate when market fear is at its peak.

CryptoQuant said, "Historically, times when open interest volatility reached low levels tended to coincide with Bitcoin macro lows," and added, "Major reversals often followed these fear phases."

publisher img

Suehyeon Lee

shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
What did you think of the article you just read?