Bitcoin News: Open Interest Hits 7-Month Low, Price Action to Intensify?

Bitcoin’s open interest has fallen to its lowest level in seven months, which points to reduced market leverage despite the current BTC price outlook. This Bitcoin news has led to optimism in the space for BTC price.

Nonetheless, this decline in BTC open interest has not negatively impacted Bitcoin’s price. According to market data, the price of BTC was trading at $87,737.97. It has also surged by 6% in the last 24 hours.

Bitcoin News: Open Interest Up in 24 Hours but Historically Low

As of March 5, the total BTC futures open interest is 559,480 BTC, worth $50.02 billion across all exchanges.

While OI has increased 6.65% over the past 24 hours. Despite this positive Bitcoin news, the overall market trend has been downward for months.

Based on this recent development, CME exchange leads with 142,680 BTC worth $12.73 billion in open interest. This accounts for 25.46% of the market.

The largest cryptocurrency exchange, Binance, follows with 106,120 BTC, or $9.49 billion, representing 18.96% of total BTC futures OI.

In addition, exchanges like Bybit, Gate.io, and Bitget have also seen fluctuations in OI, with varying recovery levels in the past 24 hours.

More importantly, the drop in open interest from 7 months ago shows traders have reduced leverage.

This could also be happening due to Bitcoin’s recent volatility. However, the short-term rise in OI within the last day hints at renewed interest in the market.

BTC Price in Recovery Mode, How High Will It Go?

Furthermore, Bitcoin’s price rebounded strongly, climbing nearly 6% within 24 hours. Many traders are watching to see if the BTC price will flip the $90,000 level as support while sustaining its current value.

Similarly, the decline in open interest over recent months indicates that much of this price action is likely driven by spot buying rather than leveraged positions.

This scenario implies that Bitcoin’s rally may be more stable as speculative trading has decreased.

While retail investors are mildly active, institutional traders remain active. The coming days will determine whether Bitcoin can maintain its current pace or face higher-level resistance.

Is National Reserve Hype Priced In?

Another factor that could influence this rally is the growing conversation surrounding President Trump’s plans for a national crypto reserves.

Since his inauguration, President Trump’s stance on Bitcoin and digital assets has fueled discussions on potential government adoption. On a positive note, this could have significant market implications.

In addition, the possibility of a US. National Bitcoin Reserve has further driven corporate investor interest in Bitcoin acquisition.

Several institutional figures, such as Michael Saylor of Strategy, Matt Huang, principal at Paradigm, and JP Richardson, CEO of Exodus, have been invited to the White House Crypto Summit.

This summit, which will take place on March 7, could significantly change the crypto ecosystem in the U.S.

Additionally, President Trump stated in a post on Truth Social that his January executive order on digital assets would establish a stockpile of cryptocurrencies. Top assets to watch out for include Bitcoin, Ethereum, XRP, Solana, and Cardano.

Considering the above, market experts believe this national reserve hype could fuel a Bitcoin breakout in the coming weeks. However, the coming days will reveal whether there will be a sustained trend per current volatility.