$BTC futures open interest is $34.5 billion. There was a short recovery from the $33.8 billion low on April 3, but the wider decline remains. Futures exposure continues to rewind as traders reduce risk as price momentum decreases. pic.twitter.com/zx06yoctsa
– GlassNode (@GlassNode) April 7, 2025
Open interest in Bitcoin futures has fallen to $345 billion, highlighting an increase in risk elimination strategies
Data shows Bitcoin Futures Market has brought a staggering slide to $345 billion when it comes to open interest. The respective open interest reductions affected both contracts compared to crypto and cash. Specifically, for contracts compared to cash, open interest fell from $30.3 billion as of March 25 to $27.4 billion at the time of exclusive data. This DIP shows that traditional market members are cautious and risky in their portfolios.
In the meantime, crypto margin contracts have shown a plunge between $7.5 billion and nearly $6.9 billion. However, in the last 48 hours, there has been a small rebound from crypto margin exposure. This points to an update of interest from relatively speculative traders striving to resume risky strategies. Therefore, encrypted contracts currently show 20.5% of cumulative open interest in Bitcoin futures, up from 18.9% seen two days ago. Therefore, the growth share of Crypto-ollateralized Leverage revealed an increased reflectivity towards the overall market.
Improved volatility leads to increased market uncertainty
According to GlassNode data, this dynamic can lead to relatively sudden price movements, especially when Bitcoin is ineffective in regaining upward momentum in the short term. As current trends show reduced leverage and careful sentiment, the upcoming days will play a key role in determining short-lived bounce or recovery following current speculative activity.
