Analysis: Bitcoin open interest has fallen 30% from its October high, laying the foundation for a bull market rebound.

CryptoQuant data shows that open interest (IO) in the Bitcoin derivatives market has fallen by approximately 30% since October of last year. Analysts point out that this "deleveraging signal" helps clear excess leverage accumulated in the market. Historically, similar sharp declines have often marked significant market bottoms, laying a more solid foundation for a potential bullish recovery. However, if Bitcoin prices continue to fall and fully enter a bear market, open interest could shrink further, implying deeper deleveraging and a prolonged correction period.