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Bitcoin Open Interest Hits Lowest Level Since August
Binance open interest drops below 100,000 BTC, lowest level in over a year.
Updated Mar 5, 2025, 1:09 p.m. Published Mar 5, 2025, 12:15 p.m.
What to know:
- Open interest in bitcoin across all exchanges has fallen from 546,000 BTC to 413,000 BTC since August.
- Open interest on the exchange Binance has dropped to its lowest level in one year, with just over 100,000 BTC in OI contracts.
Bitcoin (BTC) open interest (OI) has fallen to its lowest level since August, currently standing at 413,000 BTC ($36 billion), according to Glassnode data. OI represents the total funds allocated in outstanding futures contracts, effectively measuring the amount of leverage in the bitcoin system.
Since these contracts are denominated in dollars, their value fluctuates with bitcoin's price. To provide a more stable measure, we assess open interest in bitcoin terms, which eliminates price-based distortions.
STORY CONTINUES BELOW
Glassnode data shows that since November, bitcoin open interest has dropped from 546,000 BTC to 413,000 BTC across all exchanges, with a significant portion of this decline attributed to the unwinding of CME open interest, particularly in the basis trade.
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Meanwhile, bitcoin dropped from $109,000 to $78,000 and then recovered to $90,000. This would assume that a large part of this recent run-up has been spot-driven rather than leverage-driven.
Additionally, Binance—the second-largest exchange by OI—has seen its OI drop to a 12-month low of just over 100,000 BTC, indicating that leverage has been significantly reduced from a retail perspective. This decline reflects a sharp reduction in speculative activity, driven by bitcoin’s extreme price volatility over the past few months.
Furthermore, open interest as a percentage of bitcoin’s market cap has fallen below 2% for the first time since February 2024, underscoring the sharp decline in speculation and leverage.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
알아야 할 것:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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