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Bitcoin rally accelerates as futures open interest hits a five-month low
CoinDesk reports bitcoin-denominated futures open interest fell to about 587,584 BTC, supporting the view that short liquidations and closures, not fresh leverage, drove the push above $80,000.
Bitcoin’s surge above $80,000 is being linked to a sharp drop in derivatives positioning, according to CoinDesk. The outlet points to falling bitcoin-denominated futures open interest, which it says indicates short liquidations and position closures helped propel the rally.
CoinDesk cited Glassnode data showing bitcoin-denominated futures open interest has slipped to around 587,584 BTC, its lowest level in nearly five months, down from 645,760 BTC on Aug. 14. The report says crypto-margined open interest is at a record low, while cash-backed collateral dominates.
The move appears consistent with short covering, CoinDesk said. It explained that as the spot price climbed from roughly $62,000 to around $80,000 over the past week, open interest in bitcoin terms actually fell, which it attributes to short sellers closing bets or being liquidated after margin shortfalls.
CoinDesk also highlighted that annualized perpetual futures funding rates have remained below 10% over the period it reviewed. It interpreted the steady funding rates as a sign of only moderate bullish leverage, and argued that lower derivatives participation can make price moves steadier and gains more sustainable.
Latest closeBitcoin $79,179.29 ▲0.3%