Understanding the Current Crypto Market Decline

The cryptocurrency market has experienced a significant downturn recently, highlighted by Bitcoin’s price dropping below $100,000, triggering a chain reaction across various market metrics. A particularly noteworthy metric that has seen a substantial decline is the crypto market open interest. Since its peak in early October, the open interest has steadily decreased, reaching levels not observed in the past five months.

Crypto Market Open Interest Drops Below $140 Billion

According to data from Coinglass, the market’s open interest has dramatically decreased after reaching an all-time high earlier in October. On October 7, the open interest soared to $233 billion, coinciding with Bitcoin’s price surpassing $126,000. However, this upward momentum was short-lived as Bitcoin’s price began to fall, dragging down the open interest with it.

Recently, the market open interest dipped below $140 billion, marking a more than 40% decline within a month. This sharp downturn follows a major market collapse that occurred within hours. By October 12, just five days after the all-time high, the open interest had plunged over 25%, settling at $150 billion.

This decline reflects a cautious approach by investors, who have adopted a more conservative trading strategy as November unfolds. Notably, the daily trading volume has also taken a hit, plummeting from nearly $400 billion at the start of October to under $260 billion now, representing a 35% decrease.

The Historical Context: Bitcoin’s Previous Low Points

While the swift decline in crypto open interest might raise concerns, historical patterns offer some insights. The last time the open interest was this low was in June 2025, which marked a pivotal point before a market rally. After hitting this bottom, Bitcoin’s price surged from approximately $100,000 to $126,000 over the following months, a 26% increase.

If this trend repeats itself, with the open interest bottoming out below $140 billion, Bitcoin could be on the brink of another significant price surge, potentially gearing up for a new rally.

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