Why Bitcoin Open Interest Has Seen Its Largest Decline in Almost 3 Years

$BTC open interest in derivatives markets has fallen 55% from its all-time high of $94 billion to about $44 billion, the largest decline since April 2023. This deleveraging follows macroeconomic pressures including a hotter-than-expected jobs report, geopolitical tensions, and traditional market concerns. Bitcoin briefly exceeded $70,000 after cooler January CPI data but has retraced to around $67,500 amid reduced trader conviction.

Key takeaway: A sharp drop in open interest indicates reduced speculative leverage in Bitcoin derivatives, reflecting broader risk aversion influenced by economic indicators and global events.