Bitcoin Open Interest is telling a different story depending on how you measure it.
OI in USD is rising again, approaching $48B.
But when measured in $BTC , Open Interest is actually falling.
The YoY change makes this divergence even clearer. Growth in BTC denominated OI has been losing momentum sharply, despite USD Open Interest remaining elevated.
This suggests that part of the apparent expansion in leverage is being driven by Bitcoin's higher USD valuation, rather than by a proportional increase in actual BTC exposure.
The derivatives market is not expanding as aggressively as the USD chart alone suggests.
In BTC terms, leverage is being reduced.
That doesn't automatically make the market bullish or bearish, but it does tell us something important: speculative participation is currently weaker than the headline USD Open Interest would make you think.
OI in USD is rising again, approaching $48B.
But when measured in $BTC , Open Interest is actually falling.
The YoY change makes this divergence even clearer. Growth in BTC denominated OI has been losing momentum sharply, despite USD Open Interest remaining elevated.
This suggests that part of the apparent expansion in leverage is being driven by Bitcoin's higher USD valuation, rather than by a proportional increase in actual BTC exposure.
The derivatives market is not expanding as aggressively as the USD chart alone suggests.
In BTC terms, leverage is being reduced.
That doesn't automatically make the market bullish or bearish, but it does tell us something important: speculative participation is currently weaker than the headline USD Open Interest would make you think.
