Analyst: The futures market has shown "deleveraging signals" over the past 3 months. Resetting the market structure may indicate the formation of a bottom phase.

On January 15th, the cryptocurrency data platform CryptoQuant stated that the open interest (OI) in Bitcoin derivatives has been continuously declining over the past three months, and market leverage levels are gradually decreasing, creating conditions for a shift towards a bullish market structure. Since October last year, Bitcoin derivatives open interest has decreased by 31%, which is considered a “deleveraging signal” and helps to eliminate excessive leverage accumulated in the market. The platform cited the opinion of crypto analyst “Darkfost,” who said: “Historical data shows that such deleveraging phases often mark the formation of an important bottom, effectively resetting the market landscape and laying a more solid foundation for a potential bull market revival.” The analyst believes that this pattern may be re-emerging currently but also added that if Bitcoin continues to decline and fully enters a bear market, “open interest may further contract, indicating a deeper deleveraging adjustment and a continuation of the correction.”