Bitcoin’s price instability has become a pressing concern as it struggles to maintain levels above $70,000. Current indicators suggest that a decline into the $60,000 range could be imminent. The recent market activity has led to a significant liquidation of futures positions amounting to a loss of $55 billion in open interest over the last month, alongside a surge in Bitcoin inflows to exchanges.
Key Takeaways:
- Approximately 744,000 BTC in open interest were removed from major exchanges in this period, representing around $55 billion at present valuations.
- The cumulative volume delta (CVD) for BTC futures dropped by $40 billion over six months.
- Exchange reserves have increased by 34,000 BTC since mid-January, which raises the risk of supply surplus in the near term.
Bitcoin weekly chart. Source: Cointelegraph/TradingView
CryptoQuant’s analysis indicates that the recent open interest numbers reflect substantial position closures across exchanges rather than merely new short positions. In just this month, Binance reported a net open interest reduction of 276,869 BTC, while Bybit saw a decline of 330,828 BTC. The complete closure of open positions totals over 744,000 BTC, equivalent to more than $55 billion, especially as Bitcoin prices moved below $75,000.
Bitcoin open interest 30D change. Source: CryptoQuant
Moreover, inflows to exchanges rallied— totaling approximately 756,000 BTC since January, spearheaded by platforms like Binance and Coinbase. Conversely, Bitcoin reserves have begun to rise again since mid-January, prompting concerns as trader repositioning evolves.
Bitcoin exchange reserves. Source: CryptoQuant
Market analyst Scient emphasizes that a sustainable rebound in Bitcoin prices may require a broader period of consolidation around significant support levels. With various analysts contemplating the future trajectory of BTC, some indicate potential declines to the $50,000 region under certain macroeconomic conditions.
