Data: The open interest in Bitcoin has decreased by more than 30% from the peak in October

According to Finbold, CryptoQuant data shows that the open interest in Bitcoin across exchanges has fallen to its lowest level in seven months, currently hovering around $32.7 billion, down over 30% from the October peak of $47.5 billion.

Note: Open interest represents the total value of outstanding futures contracts and serves as a barometer of speculative participation. A contraction in open interest typically indicates that traders are closing leveraged positions, often reflecting a decrease in market confidence or an increase in uncertainty.

This decline comes at a time when short-term enthusiasm for spot Bitcoin ETFs is waning, which had been a major driver of demand earlier this year. After several weeks of record inflows, the momentum for the ETFs has cooled, with some funds experiencing slight outflows as investors reassess their risk exposure.

Reports indicate that the weakness in derivatives trading activity suggests that institutional traders may be on the sidelines, waiting for clearer macroeconomic or regulatory signals.