Price shows where the market was.
Open Interest shows how it thinks.
And in 2025, OI became the key to understanding what is happening with alts.
1️⃣ What is Open Interest in simple terms
Open Interest is the number of open futures contracts that have not yet been closed.
price = result of transactions;
OI = level of risk and capital involvement.
2️⃣ What does a drop in OI mean
When OI drops:
traders are closing positions,
leverage is removed,
capital exits risk, even if the price hasn't collapsed yet.
This is always a signal of deleveraging, not panic.
3️⃣ Why this is critical for alts
Alts are heavily dependent on:
leverage,
liquidity,
market makers.
When OI on alts ↓ 55%, it means:
the market is no longer willing to hold systemic risk in this segment.
4️⃣ Why BTC and ETH appear stronger
Because:
They are being held without leverage,
they are part of macro portfolios,
they are used as liquid risk, not speculation.
Conclusion from @MoonMan567
Price can be misleading.
Open Interest reveals the truth about risk appetite.
In 2025, this truth is simple:
the market no longer wants mass alt-leverage.
It wants control, liquidity, and macro logic.
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