Bitcoin's open interest falls by 50% amid year-end trading slowdown
Bitcoin's open interest (BTC), at $86,621.37, has decreased by nearly 50% by the end of 2025, dropping from over $70 billion to around $35-40 billion, as institutions close leveraged positions amid year-end caution.
This slowdown in activity and trading volumes indicates a defensive market stance, with prices stable in a narrow range near $86,400.
The decline in Bitcoin's open interest in 2025 is primarily due to the reduction of leveraged positions by institutional investors as the year comes to a close.
Data from Alphractal indicates a significant drop of nearly 50%, with over $30 billion in positions closed on major trading platforms.
This reflects a common year-end strategy where market participants reduce the risk of their portfolios, resulting in quieter trading in futures, spot markets, and ETFs, while prices remain relatively stable in a narrow range.
The drop in Bitcoin's (BTC) open interest of $86,621.37 has coincided with a noticeable slowdown in trading volumes, affecting both centralized exchanges and ETFs.
On centralized platforms, overall participation has softened, even as Binance maintains dominance with daily volumes exceeding $50 billion. ETF trading has also trended downward, reaching around $39 billion in recent sessions.
This reduction follows a pattern observed in previous years, where holiday periods lead to lower activity. $BTC
