BTC derivatives market in deleveraging phase as OI hits 2022 lows

The Bitcoin (BTC) derivatives market has entered a deleveraging phase as open interest (OI) has fallen to its lowest level since 2022. CryptoQuant contributor Arab Chain noted that on Jan. 8, the 30-day OI volume simultaneously decreased across major exchanges, including Binance, Bybit, Gate, and OKX. The contributor explained that a simultaneous decline in both BTC's price and OI volume indicates the market is unwinding excessive leverage. Arab Chain added that historically, such conditions have often preceded periods of price stabilization or a subsequent rebound.