The recent fall in the price of Bitcoin below $100,000 caused the entire cryptocurrency market to plummet, and other major indexes followed suit. One notable indicator that has seen a notable decline is the open interest in the crypto market. Total open interest decreased sharply in September and has been on a downward trend since then. As a result, open interest in the crypto market has now fallen to levels not seen in the past five months.
Cryptocurrency open interest falls below $140 billion
According to data from the Coinglass website, open interest in the cryptocurrency market has fallen significantly since hitting an all-time high in early October. The $233 billion peak was recorded on October 7th, coinciding with Bitcoin price also peaking above $126,000. However, the momentum has not been sustained since then, and the cryptocurrency’s open interest has slumped as Bitcoin prices have fallen.
Earlier this week, open interest fell below $140 billion for the first time in five months, marking a more than 40% drop in one month. Within hours, the market experienced its first major drop following the infamous crypto market crash. By October 12, just five days after hitting an all-time high, open interest had plummeted by more than 25% to $150 billion.
The current decline is evidence of reduced investor participation across the market, as crypto traders took a more conservative stance throughout November. Not only the open interest of cryptocurrencies was significantly affected, but the daily trading volume decreased as well.
Similar to open interest, the cryptocurrency’s daily trading volume has also suffered a double-digit plunge, from nearly $400 billion at the beginning of October to less than $260 billion as of this report. This corresponds to a collapse of approximately 35% and shows a striking similarity to open interest.
What happened to Bitcoin in the end?
While a rapid decline in a cryptocurrency’s open interest may be a cause for alarm, it is interesting to note what happened to Bitcoin the last time this metric was this low. Looking back to June 2025, the last time the cryptocurrency’s open interest fell below $140 billion, it was a virtual trough before the price rose again.
The rebound following the June lows will see Bitcoin prices rise from around $100,000 to $126,000 over the next few months, representing a 26% increase. If this trend holds and a bottom is signaled by the cryptocurrency market’s open interest falling below $140 billion, Bitcoin prices could be poised for further upside.
Featured image from Dall.E, chart from TradingView.com
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