Bitcoin Futures have shown resilience even as the cryptocurrency has slipped below the significant $100,000 support level. Recent trends indicate that while some traders faced liquidation, overall speculative interest in the market is on the rise.
In the past week, over $840 million worth of BTC positions were liquidated, primarily affecting those who were overleveraged. However, long-term interest in Bitcoin remains strong, suggesting that traders are not ready to fully capitulate just yet.
The estimated leverage ratio has decreased over the last three days, signaling that traders may be reassessing their positions. Spot markets have experienced consistent selling pressure, particularly impacting short-term holders who are now facing significant losses.
Bitcoin has encountered considerable selling pressure throughout the preceding month. The recent drop below the $100,000 mark has sparked discussions among experts regarding the potential end of the current cycle. Some analysts are advising traders to brace for a bear market.
Despite rampant fear permeating the market, the Futures trading volume has not been drastically affected. Notably, the Open Interest (OI) for Bitcoin has seen a marked decline since early October, falling from $94.12 billion to $67.21 billion—a decrease of 28.6%. This current OI level mirrors that of November-December 2024, a period when Bitcoin first surpassed the $100K milestone.
Even after losing this critical threshold, the Futures market has maintained its activity, indicating that volatility and macroeconomic shifts have not deterred speculative trading completely. This resilience is underscored by the growing legitimacy of cryptocurrencies in the mainstream, with various exchange-traded funds and publicly traded companies accumulating Bitcoin and Ethereum (ETH).
The narrative surrounding Bitcoin has evolved significantly since 2018, when it faced accusations of being a bubble and environmental disaster. Now, the landscape is markedly different, with regulations and institutional interest paving a path for broader acceptance.
The recent price fluctuations, particularly the steep decline observed on October 10, which resulted in $19 billion in liquidations, have prompted a reevaluation of market leverage. The estimated leverage ratio has fallen to levels last seen in March-April 2025, indicating a potential corrective phase. However, the relatively high OI compared to the previous year”s fourth quarter suggests that the Futures market remains vibrant.
The rise of decentralized exchanges, such as Hyperliquid, further illustrates the ongoing evolution within the cryptocurrency trading landscape. As Bitcoin continues to consolidate its position in the market, the Futures segment appears poised for continued activity, despite the inherent risks associated with leverage.
