Leverage in the Bitcoin futures market has witnessed a steep decline. According to data from CryptoQuant, the total size of open positions slid to $20.4 billion, down sharply from the July 2025 peak of approximately $45 billion. This signals a gradual unwinding of leveraged trades in the market, rather than a sudden collapse.
Sharp drop in open interest draws attention
Open interest represents the total nominal value of futures contracts that remain unsettled. The ongoing reduction in this metric indicates that investors are either closing their positions or being liquidated. Latest figures reveal that over 45% of peak leverage has now been cleared from the market.
Glossary: Open interest refers to the total value of futures contracts that are still active. CryptoQuant is an analytics platform that aggregates on-chain and derivatives market data.
The available data also reveals that the decline in open interest has closely mirrored the recent correction in the price of Bitcoin. This pattern suggests that excessive leverage is being gradually reduced, rather than triggering sharp market shocks.
According to CryptoQuant, both Bitcoin’s price and open interest fell at a similar pace during the same period, with the deleveraging progressing as a measured reduction in leverage instead of a disorderly wave of liquidations.
Liquidations accelerated throughout the year
A series of liquidations over the past year has hastened this unwinding in the futures markets. One of the largest drawdowns occurred on October 10, when Bitcoin dropped from an all-time high near $122,574 to around $105,000, resulting in record levels of single-day liquidations.
This trend continued at the start of February, with Bitcoin dropping to around $61,000 and open interest falling more than 20% in just a few days. Additional liquidations in June brought the total open interest down to $20.4 billion.
| Period | Bitcoin price | Open interest |
|---|---|---|
| July 2025 peak | Around $122,574 | Around $45 billion |
| Early February | Around $61,000 | Over 20% drop in a few days |
| Late June | $59,227 | $20.4 billion |
No clear signal of a market bottom
Despite the sharp reduction in leverage, current data does not confirm that Bitcoin has reached a definitive market bottom. Historically, declines in open interest have sometimes been followed by prolonged periods of sideways movement or additional price drops.
The present level of open interest remains above the lows seen in 2023 near $10 billion, suggesting there could still be room for further deleveraging based on past market cycles.
Additionally, the current open interest is still higher than the dips observed around $10 billion in 2023, indicating that a further contraction in leverage remains possible from a historical perspective.
Bitcoin trades below $60,000
A review of the weekly Bitcoin chart shows the price lingering below $60,000. The market remains under $68,000–$70,000, a zone previously seen as both resistance and support.
Based on the latest available data, Bitcoin was trading at $59,227. At the same time, the volume delta stayed in negative territory, highlighting persistent selling pressure in the market.
