Part 1 Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
Open interest wanes as Bitcoin deleverages while hitting $28K
Long-term confidence grows as Bitcoin peaks and market speculation drops
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
The cryptocurrency market is witnessing a fascinating juxtaposition as Bitcoin surpasses the $28,000 mark, experiencing a 70% price increase since the start of the year. In stark contrast, however, lies Bitcoin's open interest. Regarded as an aggregate of funds in open futures contracts, it is currently undergoing a steady decline, suggesting a decrease in speculative activity. However, open interest – as a percentage of Bitcoin's market cap – is nearing 1.82% year-to-date.
This indicates a notable contraction of market speculation, a stark departure from the norm in Bitcoin's typically volatile market. The simultaneous rise in Bitcoin's price and a fall in open interest, down by 28% from the beginning of the year, reflect a market less driven by speculation and more by long-term investor confidence. It underlines a potential shift in investor behavior, with possible implications for the overall stability of the cryptocurrency market.
Market Cap $1.6T
24H Volume $32.91B
