Bitcoin Open Interest Drops 17% Amid Increased Whale Accumulation
Bitcoin fell below $80,000 on Sunday for the first time since last year, currently at $79,825 after a 4.1% recovery. This is a 26% decline from its all-time high of over $109,000 in January 2025. Mixed market sentiment is influenced by on-chain data and macroeconomic conditions.
Bitcoin Open Interest Reflects Cautious Sentiment
- Bitcoin's open interest dropped by 17.8% over the past week, indicating investor hesitation following price volatility.
- This reduction suggests a significant decrease in outstanding derivative contracts.
- Historically, such declines may precede major market rebounds as speculative leverage is cleared.
Accumulation Trends Signal Long-Term Confidence
- Long-term holders and whales are accumulating Bitcoin aggressively, increasing their holdings from approximately 800,000 to 3 million BTC since 2023.
- The realized capitalization of these entities surged from around $20 billion to $160 billion.
- Whales continue to buy despite price increases, indicating strong conviction in long-term value.
- A widening gap between retail and whale realized capitalization highlights the growing influence of large investors.
- Ongoing accumulation may lead to future supply constraints as more BTC is moved into inactive wallets.
