Bitcoin futures 'deleveraging' wipes $10B open interest in 2 weeks

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Bitget Academy2025/03/19 07:28

By:Bitget Academy

Bitcoin exchanges are getting a key “deleveraging event,” which should shape future gains, new research says. In one of its “ Quicktake” blog posts on March 17, onchain analytics platform CryptoQuant revealed a $10 billion capitulation on Bitcoin futures markets.

Bitcoin derivatives traders have flipped firmly risk-off since BTC/USD hit its current all-time highs in mid-January. CryptoQuant, which uses data from various major crypto exchanges, calculates that aggregate open interest (OI) on futures fell by $10 billion in just three weeks from Feb. 20 through March 4. “On January 17th, Bitcoin's open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high,” contributor Darkfost writes. The drop, he argues, “can be considered as a natural market reset, an essential phase for sustaining a bullish continuation.”

Continuing, fellow CryptoQuant contributor Kriptolik eyed increasingly active derivatives markets overall since November 2024. Stablecoin reserves across derivatives exchanges are increasing, he revealed this week, even surpassing spot markets. This, however, is no recipe for price upside.

“When we analyze the volume and circulation of stablecoins, which act as fuel in the market, we see that despite a rapid increase in total stablecoin supply since November 2024, this has not necessarily benefited the market or investors significantly,” another blog post explains. Kriptolik described spot markets as suffering a “demand crisis.” “Until this distribution normalizes, avoiding high-leverage (high-risk) trades may be the most prudent approach,” he added.

Source: CoinTelegraph

Futures Market Updates

Looking at the Long/Short ratio, there are more long positions remaining open than shorts on ETH markets.

Bitcoin Futures Updates

Total BTC Open Interest: $48.68B (-0.40%)

BTC Volume (24H): $65.03B (-2.82%)

BTC Liquidations (24H): $35.39M (Long)/$15.76M (Short)

Long/Short Ratio: 49.55%/50.45%

Funding Rate: 0.0037%

Ether Futures Updates

Total ETH Open Interest: $18.65B (+4.34%)

ETH Volume (24H): $21.72B (-4.06%)

ETH Liquidations (24H): $15.57M (Long)/$17.59M (Short)

Long/Short Ratio: 50.27%/49.73%

Funding Rate: 0.0046%

Top 3 OI Surges

RSS3: $3.43M (+712.57%)

BGSC: $9.64M (+438.86%)

DYM: $21.04M (+130.10%)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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