Bitcoin Open Interest Plummets $4.5B in 48 Hours – Are the Bulls Finished or Is a Bounce Brewing?

By CryptoKingTrading | May 22, 2025

$BTC

In a brutal weekend for Bitcoin, open interest on BTC futures plunged by a staggering $4.5 billion, dropping from $65B to $61.5B, according to Coinglass data. The bloodbath followed a sharp price correction that saw Bitcoin sink from above $100,000 to as low as $92,000—a move that liquidated nearly $2B in positions in just 24 hours.

The Pain: Bulls Take the Hit

Longs got slaughtered. Over $1.88B in bullish positions were wiped out, leaving bulls scrambling and giving bears a dominant grip on short-term momentum. The selloff was triggered in part by geopolitical shockwaves: President Trump’s aggressive tariff policy—25% on imports from Mexico and Canada, 10% on Chinese goods—sparked global market jitters, with retaliatory measures only adding fuel to the fire.

As macroeconomic uncertainty rises, market participants are retreating, and Bitcoin's open interest looks unlikely to rebound immediately. With buyers hesitant, BTC faces increased downside risk—unless bulls step in fast.

The Silver Lining: Smart Money Still Bets on a Rebound

Despite the chaos, some see a turnaround on the horizon. Top crypto analyst Ali Martinez noted that 65.75% of Binance futures traders are still betting long on BTC. Historically, these traders have often been right at major turning points.

Meanwhile, Titan of Crypto offered a range-bound outlook, citing a new BTC zone between $93,600 and $116,000. Until that range breaks, he says the broader trend remains intact. In other words: short-term chop, long-term bullish.

Even legendary investor Robert Kiyosaki chimed in—calling the dip an “opportunity to buy Bitcoin on sale” before the next big rally.

Current Stats:

Bitcoin is trading at $112,000, down 6% in 24 hours, per CoinMarketCap. Sentiment is cautious, but the bulls aren’t entirely out of the game.

Bottom Line:

Is this a short-term shakeout or the start of a deeper decline? One thing is clear: when fear spikes, fortunes are made by those who can see past the panic.

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