Bitcoin Open Interest Crashes 17% as Whales Scoop Up Supply—Reversal Ahead?

Samuel Edyme

2 months ago

3 mins read

Bitcoin Open Interest Crashes 17% as Whales Scoop Up Supply—Reversal Ahead?

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Bitcoin is continuing to face downward pressure in the market, with the cryptocurrency falling below $80,000 on Sunday for the first time since last year.

Despite a 4.1% recovery in the past 24 hours bringing it back to $79,825, Bitcoin remains down 26% from its all-time high of over $109,000 recorded in January 2025. Market sentiment remains mixed, as investors weigh on-chain data, short-term volatility, and the broader macroeconomic environment.

Bitcoin Open Interest Reflects Cautious Sentiment

Bitcoin’s open interest metric has revealed cautious behavior among leveraged traders. CryptoQuant analyst Maartunn reported a 17.8% drop in Bitcoin open interest over the past week.

This decline represents a significant reduction in the number of outstanding derivative contracts and may reflect investor hesitation following recent price volatility.

Bitcoin open interest. | Source: CryptoQuant

Historically, such sharp declines in open interest have occurred before major market rebounds, as speculative leverage is flushed out of the system.

With leverage reset, market participants may begin re-entering positions, especially if prices find a strong support level or if further whale accumulation signals renewed bullish momentum.

Bitcoin Open Interest dropped -17.8% 🩸

This is over the last 7 days – shedding billions in leverage.

Over the last 2 years, these flush-outs often set the stage for major buy opportunity’s. pic.twitter.com/wXIxSXr7Nz

— Maartunn (@JA_Maartun) April 8, 2025

Accumulation Trends Signal Long-Term Confidence

Meanwhile, there has been a notable trend in the behavior of long-term holders and whales. According to on-chain data shared by CryptoQuant contributor Onchained, a substantial number of accumulating addresses have continued to buy Bitcoin aggressively even during the asset’s climb to new highs.

This cohort’s realized capitalization has surged from around $20 billion in 2023 to $160 billion in 2025, with BTC supply held by these entities increasing from approximately 800,000 to 3 million BTC.

Bitcoin supply held by accumulating addresses. | Source: CryptoQuant

This trend suggests that rather than scaling back during price increases, large holders significantly accelerated their buying efforts, indicating a high level of conviction. The analyst wrote:

This indicates the average acquisition price per bitcoin for accumulating addresses rose substantially, yet accumulation accelerated rather than slowed. A strong evidence of high-conviction buying regardless of price increases.

Onchained also noted a widening gap between retail and whale realized capitalization, pointing to the growing role of high-capital investors in market dynamics.

These whale wallets, typically less reactive to short-term market swings, are continuing to remove BTC from circulation, a pattern that may contribute to future supply constraints.

Onchained’s analysis further highlights three key implications: a growing supply-side pressure as more BTC enters inactive wallets, strong conviction from holders through all market phases, and the potential for future supply shocks as long-term accumulation continues.

Bitcoin (BTC) price chart on TradingView — BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with Dall-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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