Bitcoin derivatives leverage continues to decline, and market structure is being reshaped

【Blockchain Rhythm】 Interestingly, there is a phenomenon worth noting recently. The latest analysis from a crypto data platform shows that the open interest in Bitcoin derivatives has been continuously declining over the past three months, and leverage levels have significantly decreased. This is actually a positive signal for the overall market structure.

Specifically, the numbers are as follows: from October last year to now, the open interest in Bitcoin derivatives has fallen by 31%. In simple terms, the market is self-repairing, and those excessive leveraged positions are gradually being cleared out. An industry saying is “deleveraging,” and the key point is that historically, whenever this pattern appears, it often signals the formation of a market bottom. Some seasoned analysts point out that such deleveraging phases are rarely false alarms and usually indicate that the market is resetting and adjusting, laying a more solid foundation for subsequent recovery.

However, the key question now is—what’s next for Bitcoin? If the price continues to fall, and the market truly slips into a bear cycle, open interest may further shrink. What does this mean? It means the deleveraging process will be more thorough, and the adjustment cycle may be extended. In other words, there might be more volatility in the short term. But from another perspective, this deep correction could actually create conditions for a true bottom confirmation. So right now, it’s more about waiting—waiting for the market to give a clearer direction.