Bitcoin: Next Big Move for Bitcoin? Get ready, says Open Interest

Bitcoin’s price has rebounded from a steep decline caused by concerns over US President Donald Trump’s tariff policies. In the last 12 hours, panic sales on cryptocurrency were seen as concerns about economic conditions spread to various sectors.

Read Related Articles

Bitcoin dominates the market, but Market Cap remains at $1.5 Trillion

Bitcoins’ value has increased according to data from the market market capitalization The current value of the cryptocurrency market is $1.5 trillion, despite recent fluctuations in price. Although the most popular cryptocurrency, Bitcoin has recovered slightly, other altcoins have continued to suffer from greater losses.

Bitcoin has become the most dominant digital currency in the crypto-market, with a dominance of 60%. This may indicate that investors are seeking safety in this largest asset in uncertain times.

Market analysts claim that crypto issues are not the primary reason for market volatility. Instead, it’s a reaction to economic concerns in general.

$BTC The open interest in futures is currently $34.5B. Although there has been a short recovery since the low of $33.8B on April 3, the overall downtrend is still intact. The futures market continues to shrink as traders continue to cut back on risk due to a declining price trend. pic.twitter.com/ZX06yOCtsA

— glassnode (@glassnode) April 7, 2025

Futures Market Displays Surprising Resistance

Glassnode’s reports show that Bitcoin futures interest fell to $34.5billion, a slight recovery after its low on April 3, when it was $33.8billion, but maintaining a general downward trend. As Bitcoin’s momentum has slowed, traders have reduced their exposure to futures.

Since March 25, the cash margined open interest fell from $30 to $27 Billion. The crypto-margined interest also fell from $7.5 to $6.9 Billion during this time. Recent figures show that crypto-margined interest is starting to increase again. This could indicate traders moving into more risky positions.

The share of crypto-collateralized futures contracts has reached 21% of open interest from 19% on April 5. The market may be more sensitive to price changes in the coming days due to this change.

Limited Liquidations Lead to Controlled Sale

Last 24 hours saw $58 Million worth of Bitcoin Futures liquidations. The longs received $42M, while the shorts got $16.6M. This figure of $58 million is considered low by market watchers, considering that the price has dropped 10%. Bitcoin.

You can find out more about the Total Cost by clicking here. $BTC Futures liquidations reached $58.8M in the last 24 hours. The biggest hit was on longs with $42.1M being wiped out, compared to $16.6M for shorts. The liquidation amount is small despite a 10% price drop, suggesting limited leverage to chase the upside. pic.twitter.com/104kM2XQoF

— glassnode (@glassnode) April 7, 2025

Liquidation figures are relatively low, which indicates that the market wasn’t heavily leveraged before the drop. Around 73% total futures were liquidated as long liquidations.

Read Related Articles

The numbers are small compared to the previous events of February and March when liquidations were over $140 million per day. It is clear that the current trend is a steady price drop largely driven by spot-selling and not an avalanche of liquidations resulting from over-leveraged position.

Institutional investors continue to enter the market

Recent market volatility has not stopped reports of an increase in institutional demand. Statistic shows that 76 institutions holding over 1,000 BTC entered the Bitcoin network within the past two months. This represents a 4,5% increase in Bitcoin large holders.

Chart by TradingView. Image from Gemini Imagen.