Bitcoin Open Interest Declines 35% to $37 Billion Since ATH

Open interest in Bitcoin trading has decreased significantly, indicating a shift in market sentiment. Key points include:

• Bitcoin's open interest fell from $57 billion to $37 billion, a 35% decline since its all-time high.
• The all-time high was reached at $108,786 on January 20th; current trading is between $83k and $86k, down over 22%.
• A declining open interest suggests traders are closing positions due to uncertainty or reduced confidence.
• The drop reflects decreased on-chain activity and liquidity, with investors favoring short-term trades.
• Traders are shifting to cash-and-carry strategies, weakening long positions amid ETF outflows and CME futures closures.
• Bitcoin's hot supply metric decreased from 5.9% to 2.8% of total circulation, indicating reduced trading activity.
• Exchange inflows dropped from 58,600 BTC daily to 26,900 BTC, signaling weaker demand.