Bitcoin Open Interest Drops 30% From October Peak, Deleveraging May Set Stage for Bullish Recovery

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Bitcoin's open interest has fallen 30% since October, indicating market deleveraging and reduced downside risk, which analysts suggest could precede a bullish recovery.

According to the Binance Market Update for January 15, 2026, Bitcoin's open interest has significantly dropped by 30% from its peak in October. This substantial deleveraging indicates a reduction in speculative positions across the market, suggesting that traders are unwinding their leveraged bets. This decrease in open interest, coupled with low on-chain volume and consistent supply absorption, points to a diminished immediate downside tail-risk for Bitcoin. Analysts believe that this period of deleveraging could be a crucial phase, potentially setting the stage for a bullish recovery in the cryptocurrency market as the speculative froth is removed.

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