The Bitcoin perpetual futures market is experiencing a significant downturn in speculative activity, with traders showing increased caution. According to an analysis by blockchain analytics firm Glassnode, key metrics like open interest have remained suppressed since a major market liquidation in October.

Key Indicators Signal a De-Risked Environment

Data shows that Bitcoin-denominated open interest, which represents the total value of all outstanding futures contracts, has failed to recover above the 310,000 BTC level. This is a notable drop from the highs of over 380,000 BTC recorded earlier in the market cycle and signals a substantial exit of leverage.

At the same time, funding rates have trended lower. This suggests a fading conviction among traders holding leveraged long positions, as fewer are willing to pay a premium for upside price exposure. A senior Glassnode researcher, known as CryptoVizArt, characterized the quiet derivatives landscape as a “ghost town,” highlighting that speculative participation remains deeply muted.

This shift toward a less leveraged derivatives market suggests a more stable backdrop for Bitcoin. With reduced speculative capital, the market may experience lower volatility compared to previous stages of the cycle where high leverage often amplified price swings.