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Bitcoin market in hibernation as perp trading hits three-year low

K33 said elevated open interest leaves bitcoin more exposed to liquidation-driven swings ahead of the U.S. CPI release.

Reported · Written up by our desk · Market Structure

The Block reported that bitcoin trading has entered a “hibernation” phase as perpetual contract, or perp, activity fell to a three-year low ahead of the next U.S. CPI release.

According to The Block, K33 linked the slowdown to a sharp drop in perp trading activity and warned that elevated open interest can leave the market vulnerable to sharper moves if liquidations accelerate.

With traders positioned for Wednesday’s U.S. CPI data, the report highlighted the potential for liquidation-driven volatility given the current open interest backdrop.

Latest closeBitcoin $64,170.00 ▲1.0%

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