According to Glassnode’s senior researcher, the Bitcoin perpetual futures market resembles a “ghost town,” with Open Interest remaining at subdued levels.
Bitcoin Futures Open Interest Stays Low Since October Reset
In a new post on X, Glassnode senior researcher CryptoVizArt.₿ discussed the recent trends in Bitcoin’s Open Interest for the perpetual futures market. The term “Open Interest” refers to an indicator that tracks the total number of active positions related to the asset across all centralized derivatives platforms.
An increase in this metric signifies that investors are taking on new positions, typically introducing fresh leverage into the market, which can lead to increased volatility in the cryptocurrency’s price.
Conversely, a decline in the indicator indicates that perpetual futures traders are either voluntarily closing their positions or being forcibly liquidated by their platforms. This trend may contribute to more stable price action for BTC as excess leverage is cleared.
Here is the chart shared by CryptoVizArt.₿, illustrating the trend in Bitcoin’s perpetual futures Open Interest (BTC-denominated) over the past few months:
The graph shows that the BTC-denominated Bitcoin perpetual futures Open Interest experienced a significant drop in October due to a sharp decline in the cryptocurrency’s price.
After the leverage flush, the indicator remained relatively stable at lower levels, but by mid-November, there was speculation about a rise as the asset’s correction went on, with the metric peaking at a level that so far seems to be the bottom.
However, since that peak, the indicator has once again cooled down, approaching the same lows that followed the major liquidation event in October. With Open Interest now below 310,000 BTC, it appears that speculative interest in the market has once more diminished.
The recent drop in speculative activity coincides with a decrease in the perpetual futures Funding Rate, a metric measuring the fees exchanged periodically between short and long investors.
The chart illustrates that the Bitcoin perpetual futures Funding Rate has been trending downward for some time. “This persistent decline indicates a reduction in leveraged long conviction, with traders hesitant to pay a premium to maintain upside exposure,” the Glassnode researcher pointed out.
Given these recent developments, CryptoVizArt.₿ referred to the perpetual futures market as a “ghost town.”
BTC Price
As of this writing, Bitcoin is hovering around $90,500, reflecting an increase of nearly 6% over the past week.
