Falling open interest in bitcoin futures despite higher prices indicates traders are reducing exposure rather than adding bullish bets
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
Still mostly niche and specialist coverage — not yet picked up broadly by mainstream press.
"The slow-moving collateralized lending that produced 2022's cascading failures has shrunk considerably, while the faster-moving derivatives exposure that drives sudden liquidation events has been rebuilding."
"Rising borrowing costs tend to drive investors away from risk assets such as cryptocurrencies. Bitcoin is mainly getting hit by the rising probability of a Fed hike, as well as macro concerns about AI-related credit risks."
"open interest in bitcoin futures has fallen even as prices edged higher, suggesting traders are reducing exposure rather than adding fresh bullish bets. Order-book data also continues to point to net selling pressure"