Bitcoin news of price cooling off after a six-figure high as open interest sank while longs stood by shook the market. This week, the charts shook with a $7.4B dip, but funding remained firm and sentiment sleek. Meanwhile, bulls still circle for the next rebound as leverage resets and price finds ground.
Bitcoin News: Open Interest Decline Across Major Exchanges
Open interest refers to the total value of all open futures contracts. Typically, a drop in open interest means closing positions or liquidations. According to data from Alphractal, total open interest dropped $7.4 billion over the past 7 days.
The chart above is an aggregated open interest delta. Increases are shown in green bars and decreases in red bars. Red bars indicate large net reductions from late March into April 1, 2025. The daily decrease was steepest at $13 billion marking a pessimistic news for Bitcoin.
All major exchanges contribute to this drop. Additionally, the second chart shows the 7-day delta in open interest across exchanges. It confirms a broad reduction, except for Bitfinex. Open interest in Bitfinex saw a minor increase, indicating that some traders were moving their positions to that platform.
Funding Rates Remain Positive Despite Liquidations
Funding rates are regular payments between long and short futures traders, which are positive meaning long traders are paying short traders. It is when more traders are betting that the price will go up.
According to the aggregated funding rate, the bars stayed mostly green, even as open interest dropped sharply. The funding rate was above 0% almost all the time, with only a few very short periods of negative funding.
It implies that while many positions were liquidated, most of the remaining positions are still long.
Falling open interest and a positive funding rate indicate that short-term liquidations were due to over levers positions. Nevertheless, the overall bullish sentiment remains as traders are still holding long positions despite the correction.
BTC Price Corrects After Topping $100K, Bitcoin News Cycle Turns Negative
Meanwhile, Bitcoin recently peaked above $100,000 but has since corrected. According to the Glassnode chart shared by ali_charts, Bitcoin was trading at $82,418.89 as of March 30, 2025. It has fallen closer to the +0.5 standard deviation band, which is at $94,280.
This correction places Bitcoin below this upper pricing band. That indicates after a strong rally, Bitcoin is cooling. However, the current price is still above the mean MVRV band of $76,180 and the realized price of $43,739.87.
Conversely, the MVRV bands are useful in showing whether Bitcoin is overheated or undervalued. In the past bull markets, Bitcoin has hit the +1.0 standard deviation level. That band now sits at $112,380.
The recent decline to around $82,000 may, therefore, be a sign that Bitcoin is rebalancing after a period of extended growth.
Liquidations Fuel Volatility While Sentiment Holds Steady
Sudden price moves were caused by large liquidations early in the week. High leverage is a time when these sharp swings are common. Besides, data from the funding rate and open interest show that many traders were forced out of positions.
However, traders holding longs have not backed down even with this. The fact that the funding rate is still positive means that the long bias is still intact. Falling open interest sharply often clears excess leverage from the market, which can stabilize price action.
According to data from Alphractal and Glassnode, the market is just adjusting after a rally. Price is now moving toward the mid-MVRV bands, leverage is resetting, and traders may be preparing for the next phase.
The post Bitcoin News: Futures See $7.4B Exit as Longs Tighten Grip — Market Reset Coming? appeared first on The Coin Republic.
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