bullish

Bitcoin

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Bitcoin futures open interest (OI) — a measure of derivative market participation — has gained almost 13% from the start of the year, which analysts say could reflect more risk appetite for crypto.&nbsp;
The increase follows a sharp deleveraging phase from October through December, when Bitcoin derivatives exposure fell alongside a broad market correction.
Bitcoin futures OI has fallen 17.5% from 381,000 BTC to 314,000 BTC over the past three months, following a roughly 36% price correction from early October, “reflecting a phase of risk reduction and the unwinding of leveraged positions,” <a href="https://x.com/Darkfost_Coc/status/2013009738926088522" rel="noopener nofollow" target="_blank">said</a> CryptoQuant analyst “Darkfost” on Monday.
However, a recovery in Bitcoin futures OI could be in motion, said Darkfost. Data from Coinglass shows it <a href="https://www.coinglass.com/open-interest/BTC" rel="nofollow noopener" target="_blank" title="https://www.coinglass.com/open-interest/BTC">gained</a> from an eight-month low of $54 billion on Jan. 1 to more than $61 billion on Jan. 19. 
It also hit an eight-week high of $66 billion on Jan. 15.&nbsp;
“At present, open interest is showing signs of a gradual recovery, suggesting a slow return of risk appetite,” said the analyst.&nbsp;
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 “If this trend continues and strengthens, it could increasingly support a continuation of the bullish momentum, although for now the rebound remains relatively modest.”
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OI refers to the number or notional value of crypto <a href="https://cointelegraph.com/news/perpertuals-oi-rises-as-leverage-longs-position-for-end-of-year-move-glassnode">derivatives</a> contracts that remain open and have yet to be settled, or in other words, a measure of how many active bets exist in the market at any given time.
When it is rising, more traders enter leveraged positions, indicating growing confidence and risk-taking, but a falling OI indicates deleveraging as traders reduce exposure and risk.&nbsp;
<figure> 
 <img src="https://s3.cointelegraph.com/uploads/2026-01/019bd4cd-5fe9-754f-91fe-a7a6063b5467.png" title="" alt="Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite">
 <figcaption style="text-align: center;">
 Bitcoin derivatives OI graph. Source: <a href="https://x.com/Darkfost_Coc/status/2013009738926088522" rel="nofollow noopener" target="_blank" title="https://x.com/Darkfost_Coc/status/2013009738926088522">Darkfost</a>
 </figcaption>
</figure>
<h2 id="deleveraging-is-also-good-for-markets">Deleveraging is also good for markets&nbsp;</h2>
Zooming out shows that futures OI is still down 33% from its all-time high of $92 billion in early October.&nbsp;
This is also a “deleveraging signal” which often marks significant bottoms, “effectively resetting the market and creating a stronger base for a potential bullish recovery,” the analyst said last week.&nbsp;
Related: <a href="https://cointelegraph.com/news/bitcoin-oi-falls-30-resetting-markets-bullish-recovery-cryptoquant">Bitcoin open interest falls 30%, setting up bullish recovery: Analyst</a>
<h2 id="bitcoin-options-open-interest-exceeds-futures">Bitcoin options open interest exceeds futures</h2>
Co-founder and CEO of Coin Bureau, Nic Puckrin, observed on Sunday that Bitcoin options OI flipped futures OI last week.
Futures are a direct leveraged bet on Bitcoin’s price direction. Traders are obligated to buy or sell at a <a href="https://cointelegraph.com/news/bitcoin-price-bottom-88k-next-cycle-last-cme-gap-open">set settlement price</a> and date, and if the price moves against them, they get liquidated.
Options provide the right, not the obligation, to buy or sell at a strike price with no forced liquidations, which are better for dampening volatility and overall <a href="https://cointelegraph.com/news/bitcoin-down-gold-futures-up-europe-threatens-trade-bazooka">market</a> stability.
According to Checkonchain <a href="https://charts.checkonchain.com/btconchain/derivatives/derivatives_options_oi_byexchange_0/derivatives_options_oi_byexchange_0_light.html" rel="noopener nofollow" target="_blank">data</a>, aggregate Bitcoin options OI over all exchanges stands at $75 billion, while futures OI is at $61 billion in notional value.
“This means big money is building positions that shape price itself through hedging and expiry mechanics. It isn’t just betting up or down anymore,” Puckrin said.&nbsp;
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 “There’ll be fewer liquidation cascades, more sticky levels, and retail leverage getting trapped near key prices. BTC’s market is behaving less like a casino and more like a structured financial system.”
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Options OI is currently highest at the $100,000 strike price with $2 billion on Deribit, one of the industry's largest derivatives exchanges.&nbsp;
Magazine: <a href="https://cointelegraph.com/magazine/michael-saylor-bitcoin-treasury-company-us-clarity-act-zcash-hodlers-digest/">Wintermute on crypto recovery, BTC allocation cut on quantum risk: Hodler’s Digest</a>

Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite

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