Crypto Prices Take a Nose-Dive!

So, it seems like the whole crypto world is having a meltdown. Prices are dropping faster than a hot potato, especially Bitcoin, which is now below the $100,000 mark. Other major players in the crypto field are following suit, just like a row of dominoes!

Open Interest Woes

But wait, there’s more! One major metric feeling the burn is crypto market open interest. It tanked back in September and has been on a downward spiral ever since. Can we get a moment of silence for the fallen open interest? Last seen five months ago, it’s gone missing again!

All-Time Highs to Disastrous Lows

According to our friends over at Coinglass, open interest has taken quite the nosedive after hitting a whopping $233 billion peak on October 7th. Yes, that was the same day Bitcoin decided to strut its stuff, peaking over $126,000. But alas, what goes up must come down! As Bitcoin’s price slipped, the open interest followed suit like a sad puppy.

40% Drop! Yikes!

Earlier this week, open interest dropped below $140 billion for the first time in five months—yikes! That’s an over 40% crash in a mere month. It’s like watching a car wreck in slow motion. Just five days after the all-time high, bam! Open interest nosedives more than 25%, landing at $150 billion. Ouch!

Investor Participation? What’s That?

This decline is basically a big neon sign flashing “Hey, investors are sitting on the sidelines!” Crypto traders are playing it safe and keeping their wallets closed this November. And it’s not just the open interest that’s in trouble; daily trading volume took a hit too.

Volume Woes

Just like open interest, daily trading volume also faced a double-digit decline, dropping from nearly $400 billion at the start of October to under $260 billion. That’s roughly a 35% crash! It’s almost like watching a slow-motion train wreck.

The Bright Side?

Now, before we sound the alarm bells, let’s take a quick peek back to June 2025 when open interest was below $140 billion. Spoiler alert: that was the bottom before Bitcoin pulled off an impressive rally! Back then, Bitcoin bounced back from around $100,000 to a high of $126,000—a sweet 26% gain!

Could History Repeat Itself?

If history likes to repeat itself, we might be in for another Bitcoin rally if open interest stays below that magic $140 billion mark. So, keep your fingers crossed and your wallets ready!