BTC Open Interest Falls Almost 20%, Speculators Liquidated — Yet Will BTC/USD Rebound?
BTC open interest has decreased by almost 20% as traders exited during a significant $10,000 drop driven by the Trump tariff conflict. Rising concerns over inflation, stagflation, and a general deceleration in the global economy could create a risk-averse atmosphere, prompting additional investments into bonds and cash. Nonetheless, might this be an opportune moment to Acquire BTCUSD?
Bitcoin and cryptocurrency values are known for their volatility. Following a brief climb on April 7, values fell yesterday, reinforcing the losses from last week and possibly paving the way for even lower valuations in the near future.
Although the short-lived surge to approximately $80,200 on April 8 might serve as an encouraging indicator, the instability within current market conditions could quickly negate it as broader economic pressures persist.
(BTCUSDT)
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Bitcoin Open Interest Declines Nearly 20%
In the upcoming trading sessions, BTC prices will be influenced by substantial macroeconomic pressures, while geopolitical tensions will significantly impact market sentiment, particularly concerning risky assets such as crypto.
Considering recent developments and the overall chaos that has led to a decline of over $10,000 for the leading crypto asset since April 2, on-chain analytics now indicate a substantial unwinding of leveraged Bitcoin positions across major perpetual exchanges such as Binance, Bybit, and OKX.
An analyst on X points out that BTC open interest has fallen almost 20% over the past week of trading, signifying a significant liquidation of leveraged traders.
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The recent price drop was mainly propelled by liquidations—including a staggering $1.3 billion liquidation on April 7 alone—and sentiment is currently bearish at existing spot rates.
This could restrict capital from flowing into crypto and Bitcoin. The situation might deteriorate further as tensions from the Trump “Liberation Day” tariff war escalate dramatically.
On-chain analytics confirm a substantial 17.8% decline in BTC open interest, indicating an aggressive liquidation of leveraged traders. Billions of dollars in speculative positions have been closed within just a week—a typical market reset that often precedes a new cycle of accumulation.
Nonetheless, with the intensifying tensions from the Trump-era “Liberation Day” tariff conflict, the prospect of any potential recovery remains questionable, further impacting even some of the most promising meme coins to buy in 2025.
Yesterday, China retaliated against Trump’s tariffs by liquidating $50 billion in U.S. Treasuries.
In retaliation, the U.S. introduced an escalated tariff rate of 104% on Chinese imports, effective immediately.
As a result, BTC values fell from around $80,200 to a low of $74,500 and continue to experience downward pressure.
At this rate, open interest is likely to further decrease as traders close their positions, and others may rapidly decrease leverage to comply with margin requirements.
With these developments, the market is likely to become leaner and more poised for a sustainable rebound, as history suggests.
Whenever abrupt losses coincide with a significant drop in open interest, trading market prices typically rebound as astute traders seize the opportunity to buy at lower prices.
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Is It Time to Acquire the BTC/USD Dip?
In a separate discussion, another analyst on X mentioned that the short-term holder crypto market value to realized value (MVRV) ratio stands at 0.85.
This contraction indicates that short-term holders—addresses that acquired BTC within the last 155 days—are experiencing a 15% rekt.
Concurrent data reveals that nearly 26% of all Bitcoin in circulation is currently at a wrecked.
Bitcoin in Loss: 5,124,348 BTC (25.8%)
That represents a considerable portion of the supply underwater.
Though it may appear concerning, such a situation isn’t without precedent.
Indeed, we witnessed similar downturns in 2024.
— CryptoQuant.com (@cryptoquant_com) April 7, 2025
Nevertheless, with the STH MVRV ratio at 0.85—beneath the 0.90 threshold—this may suggest that Bitcoin is significantly undervalued.
When this metric fell below 0.90 in August and September 2024, BTC values rose sharply. Consequently, this led to an influx of capital toward some of the hottest crypto presales.
If historical trends are any indication, Bitcoin price could very well be in a classical accumulation phase. Following this, the token could surge beyond the $90,000 resistance.
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Declining BTC Open Interest: Is BTCUSD Set for a Recovery?
- Recent BTC price declines triggered by significant liquidations
- BTC open interest plummets nearly 20% in a week, resulting in the exit of over-leveraged traders
- China liquidates U.S. Treasuries as the U.S. raises tariffs on Chinese goods in retaliation
- Is now the right moment to purchase the BTCUSD dip in expectation of potential gains?
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