Glassnode has reported that open interest in bitcoin (BTC) futures has fallen to its lowest level since March this year. The update was published by Glassnode.

Lower leverage reduces risk of cascading liquidations

The decline in open interest indicates that some positions have been closed and trading with borrowed funds has decreased. This reduces the likelihood of cascading liquidations and limits the scale of sharp market movements.

Open interest reflects the number of active contracts

Open interest (OI) is the total number of all open futures contracts for an asset. OI trends help assess the level of participation in the derivatives market and the amount of leverage being used.