Bitcoin's open interest hits $34 billion: Why the Dollar decline masks stable leverage demand
|- Bitcoin futures open interest drops 28% in dollar terms but remains flat in BTC.
- Forced liquidations total $5.2 billion over two weeks, explaining the nominal contraction.
- Options bearish skew hits 22% and funding rates remain below the 12% threshold.
Aggregate Bitcoin futures open interest plummeted to $34 billion on Thursday, reflecting a 28% decline over the past thirty days. Yet the dollar figure masks a different reality when measured in Bitcoin terms: the amount remains virtually flat at 502,450 BTC, showing that leverage demand has not actually decreased. Forced liquidations totaled $5.2 billion over the past two weeks, explaining part of the contraction in dollar terms.
Bitcoin's decoupling from traditional markets
Bitcoin has fallen 28% over the past month while gold reclaimed the $5,000 psychological level and the S&P 500 trades merely 1% below its all-time high. Investors search for reasons explaining the divergence. Weak US labor market data provide a clue: the economy added just 181,000 jobs in 2025, below expectations.
The annualized funding rate on Bitcoin futures remained below the neutral 12% threshold for four consecutive months, signaling widespread fear. Options markets reveal even greater concern: the options delta skew at Deribit hit 22%, indicating that traders buy put options at elevated premiums. Under normal conditions, the indicator ranges between -6% and +6%, reflecting balance in risk aversion.
Despite bearish derivative signals, the average daily volume of $5.4 billion in US-listed Bitcoin ETFs contradicts reports of weakened institutional demand. Bitcoin's recovery likely depends on greater clarity regarding US labor market conditions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.