Bitcoin futures open interest recovered 13% in January following the massive deleveraging event last year, suggesting a slow return of risk appetite.
Bitcoin futures open interest (OI) — a measure of derivative market participation — has gained almost 13% from the start of the year, which analysts say could reflect more risk appetite for crypto.
Bitcoin futures OI has fallen 17.5% from 381,000 BTC to 314,000 BTC over the past three months, following a roughly 36% price correction from early October, “reflecting a phase of risk reduction and the unwinding of leveraged positions,” said CryptoQuant analyst “Darkfost” on Monday.
However, Darkfost said recovery in Bitcoin futures OI could be in motion after gaining from an eight-month low of $54 billion on Jan. 1 to more than $61 billion on Jan. 19.
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Powell said the Federal Open Market Committee is weighing interest rates on a meeting-by-meeting basis, with no long-term consensus. US Federal Reserve Chair Jerome Powell said the 19 members of the Federal Open Market Committee (FOMC) remain divided on additional interest rate cuts in 2025.At Wednesday’s press conference after the Fed’s 25-basis-point rate cut, Powell said the central bank is trying to balance its dual mandate of maximum employment and price stability in an unusual environment where the labor market is weakening even as inflation remains elevated. Powell said:Powell said that the “median” FOMC projection from the Federal Reserve’s Summary of Economic Projections (SEP), the Fed’s quarterly outlook for the US economy that informs interest rate decisions, projected interest rates at 3.6% at the end of 2025, 3.4% by the end of 2026, and 3.1% at the end of 2027.Read more
