{"id":55132,"date":"2026-01-19T08:10:57","date_gmt":"2026-01-19T08:10:57","guid":{"rendered":"https:\/\/crypto-globe.com\/?p=55132"},"modified":"2026-02-04T18:57:47","modified_gmt":"2026-02-04T18:57:47","slug":"bitcoin-breathes-a-sigh-of-relief-the-market-is-shedding-leverage-and-seeking-a-new-direction","status":"publish","type":"post","link":"https:\/\/crypto-globe.com\/en\/bitcoin-breathes-a-sigh-of-relief-the-market-is-shedding-leverage-and-seeking-a-new-direction\/","title":{"rendered":"Bitcoin breathes a sigh of relief: The market is shedding leverage and seeking a new direction"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Bitcoin derivatives markets have undergone a significant clean-up in recent months. Open interest has fallen by around 30% since October, indicating a massive retreat from leveraged positions and a calming of the previously overheated market. Similar phases in the past have often preceded price stabilization, but not an immediate return to growth euphoria.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Deleveraging as a necessary market restart<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to data from on-chain analytics company CryptoQuant, the more than 30% decline in open interest is a clear signal of risk reduction in the <a href=\"https:\/\/crypto-globe.com\/en\/buffett-indicator-at-its-peak-us-market-enters-2026-with-serious-warning\/\" target=\"_blank\" rel=\"noopener\" title=\"\">market<\/a>. The closing of highly leveraged positions reduces the likelihood of sharp sell-offs and chain liquidations, which are typical of overheated market phases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/crypto-globe.com\/en\/analyst-claims-bitcoin-could-reach-175000-by-the-end-of-the-year\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Analyst<\/a> Darkfost points out that historically, such periods have often marked the emergence of local price bottoms. The market usually stabilized after them and created a firmer foundation for further price development, even if short-term uncertainty remained.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\">Read also:\u00a0<a href=\"https:\/\/crypto-globe.com\/en\/bitcoin-has-triggered-a-technical-alarm-history-suggests-increased-risk\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Bitcoin has triggered a technical alarm<\/strong><\/a><br><\/h3>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Extreme speculation in 2025 and caution in the present<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The significance of the current decline is evident when looking at developments in 2025, when <a href=\"https:\/\/trader-magazine.com\/news\/us-bitcoin-spot-etfs-have-had-a-successful-year-helping-bitcoin-to-grow\/\" target=\"_blank\" rel=\"noopener\" title=\"\">bitcoin<\/a> open interest rose to a historic high of over $15 billion. By comparison, during the peak of the bull market in 2021, open interest on Binance reached approximately $5.7 billion, which shows how extremely overleveraged the market was at the time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to data from <a href=\"https:\/\/www.coinglass.com\/\">CoinGlass<\/a>, total open interest across exchanges today is around $65 billion, significantly lower than October&#8217;s highs. Derivatives markets thus appear cleaner and more stable, but at the same time, they do not yet confirm a clear structural shift towards a new bull market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\">Don\u2019t miss out:\u00a0<a href=\"https:\/\/crypto-globe.com\/en\/fx-junction-social-trading-that-connects-traders-and-profits\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>FX Junction<\/strong><\/a><br><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin derivatives markets have undergone a significant clean-up in recent months. Open interest has fallen by around 30% since October, indicating a massive retreat from leveraged positions and a calming of the previously overheated market. Similar phases in the past have often preceded price stabilization, but not an immediate return to growth euphoria. Deleveraging as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":55125,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[162],"tags":[99,110,93],"class_list":["post-55132","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","tag-bitcoin-en","tag-crypto","tag-cryptocurrencies"],"aioseo_notices":[],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"aioseo_meta":{"seo_title":"The market is shedding leverage #separator_sa #site_title","meta_description":"Bitcoin derivatives markets have undergone a significant clean-up in recent months. Open interest has fallen by around 30% since October, indicating.","focus_keyword":""},"_links":{"self":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/55132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/comments?post=55132"}],"version-history":[{"count":2,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/55132\/revisions"}],"predecessor-version":[{"id":56093,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/55132\/revisions\/56093"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/media\/55125"}],"wp:attachment":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/media?parent=55132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/categories?post=55132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/tags?post=55132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}