Bitcoin (BTC) Market ‘Deleveraging’: Bullish?

Bitcoin’s (BTC) 90-day open interest, i.e., the aggregated USD-denominated value of all futures and contracts unsettled so far, losing its volume. Amid increasing fear sentiment, Bitcoin (BTC) markets entered the “deleveraging” phase, which historically opened amazing opportunities for traders.

Bitcoin’s (BTC) open interest drops; opportunity for bulls?

The 90-day open interest for Bitcoin (BTC), the largest cryptocurrency, sees its dynamics turning negative, CryptoQuant’s community expert, who goes by @Darkfost_Coc, indicates. It means that fewer and fewer traders have their leveraged positions unsettled.

In recent days, Bitcoin’s 90-day OI slumped from $33.6 billion in equivalent to $23.1 billion, losing 31.2% from its peak volume. This is a sriking indicator that Bitcoiners (BTC), in particular futures traders, become increasingly cautious.

As noticed by CryptoQuant experts, such “cool-down” phases often unlock opportunities for traders. Historically, every phase of deleveraging has opened good short-term and medium-term opportunities for Bitcoiners globally.

The last massive deleveraging events happened prior to spot Bitcoin ETF approvals in the U.S. in January 2024 and during the recession of Q4, 2022-Q1, 2023.

As of printing time, Bitcoin open interest on major exchanges continues its free-fall.

Crypto market fear acccelerates again

Bitcoin (BTC), the largest cryptocurrency, is changing hands at $83,300, up 0.28% in the last 24 hours. Also in the last 24 hours, daily trading volume for BTC/USDT pairs almost doubled on major CEXes.

However, in general, pessimism still dominates over cryptocurrency markets. The Crypto Fear and Greed Index is down to 32/100, which is equal to the “fear” zone.

The markets might be getting nervous ahead of the March 18-19 FOMC meeting in the U.S., as new monetary decisions might be taken.