Bitcoin open interest hits lows not seen since 2024: Is TradFi abandoning BTC?

💡 DMK Insight

Bitcoin’s open interest dropping to $34 billion signals a potential shift in market sentiment. With BTC currently at $66,982.00, this decline in open interest suggests that traders are becoming more cautious, likely due to increasing concerns over US macroeconomic indicators. If TradFi players are indeed pulling back, it could lead to decreased liquidity and volatility in the short term. This scenario might push BTC into a consolidation phase, especially if it fails to hold above key support levels. Traders should keep an eye on the $65,000 mark as a critical level; a break below could trigger further selling pressure. On the flip side, if macro data improves or if there’s a resurgence in institutional interest, we could see a rebound. Watch for any shifts in open interest trends or significant inflows into BTC, as these could indicate a reversal in sentiment. The next few weeks will be crucial for determining whether this is a temporary pullback or the start of a more significant trend.