Bitcoin Open Interest Hits Lowest Level In 2025, Is A Pump Or Crash Coming Next?
Bitcoin is slowly stabilizing after the dramatic flash crash that briefly despatched its value plunging to $101,000 last weekend. The occasion triggered widespread liquidations throughout the derivatives market and rattled dealer confidence, leaving market sentiment deeply shaken.
On-chain information from CryptoQuant exhibits that Bitcoin’s open curiosity variation fell to unfavorable 25 within the aftermath of the flash crash, its lowest studying in 2025. This decline highlights a market that has been cleansed of extreme leverage, however the query is whether or not this factors to a significant rebound or the beginning of a deeper correction.
Bitcoin Open Interest Sinks Into Extreme Fear Territory
According to on-chain analytics platform CryptoQuant, Bitcoin’s open interest variation, an indicator measuring modifications within the complete variety of lively futures contracts, just lately entered the Extreme Fear zone. Particularly, the open curiosity reached a low of round unfavorable 25 factors, its lowest degree thus far in 2025.
This metric had beforehand reached comparable lows throughout BTC’s final main correction earlier within the 12 months, when it dropped to round unfavorable 25. However, the final time the Bitcoin open curiosity dropped under this unfavorable 25 degree was in mid-2023.
The newest studying round unfavorable 25 exhibits the intense market capitulation, the place over-leveraged merchants have been flushed out when BTC touched $101,000. Similar drops thus far this 12 months have proven moments of utmost pessimism however have been adopted by renewed power as soon as the promoting stress subsided.
Each time open curiosity collapsed to this diploma, Bitcoin’s value discovered assist quickly after and started a gentle restoration within the following weeks. This recurring sample means that excessive deleveraging usually precedes the formation of native or macro bottoms.
What Does This Mean For Bitcoin?
If the crash in open curiosity follows a value drop, it usually signifies a wave of lengthy liquidations. This kind of extraordinarily low open curiosity implies that most leverage merchants has been absolutely flushed from the system, and the market is now cleaner. In such circumstances, it might probably really be bullish in the medium and long terms.
As proven within the chart above, the final time open curiosity fell to unfavorable 25 was in early April, when BTC lastly ended its extended correction from above $106,000 at $76,300. What occurred after was months of uptrends that lastly noticed Bitcoin break above $106,000 once more and into new all-time highs.
A comparable efficiency and comparable rebound would mission BTC’s value to endure a gentle 40% to 50% improve over the subsequent a number of months. This regular improve would ship Bitcoin value motion again above $150,000 by early 2026.
At the time of writing, Bitcoin is trading at $106,900, up by 1.4% up to now 24 hours.