Analyst sees falling BTC open interest as potential rebound signal

A significant decrease in open interest (OI) in the Bitcoin derivatives market is being viewed as a positive sign of deleveraging, according to an analysis by CryptoQuant contributor Darkfost. The contributor noted that Bitcoin derivatives OI has fallen by 31% since last October, describing it as a healthy signal that excessive leverage is being cleared from the market. Historically, such movements have often established major market bottoms and created momentum for a rebound. However, Darkfost cautioned that if BTC falls further into a full-blown bear market, open interest could decline even more, potentially prolonging the market correction.