Bitcoin open interest is down 55% from its all-time high — the deepest wipeout since April 2023.

What this means:
• Billions in leveraged positions closed
• Excess speculation removed from the system
• Funding pressure cooling off
• Market shifting from euphoric to defensive
When open interest collapses this hard, it usually signals one of two things:
1️⃣ Forced liquidations + panic unwind
2️⃣ A structural reset before the next expansion phase
High OI = crowded trade.
Falling OI = leverage getting destroyed.
Historically, major drawdowns in open interest often happen near local bottoms — when weak hands are gone and volatility peaks.
One thing is clear —
Speculative excess just got erased.