Bitcoin derivatives market ends eight-month deleveraging cycle, open interest on Binance returns above its 180-day moving average

According to analyst Darkfost(@Darkfost_Coc) in a social media post, since the October 10 incident last year, Bitcoin has experienced a long period of deleveraging in the derivatives market. When open interest falls below the 180-day moving average, it usually means a decline in futures activity, and investors 'risk-removing behavior leads to a decrease in open interest. Affected by the worsening global macroeconomic and geopolitical background, traders generally choose to reduce their risk exposure. This deleveraging phase of Binance lasted for about eight months, and the last time a similar situation occurred occurred during the last bear market in 2022, before the FTX crash. However, since early May, the trend seems to be changing. Open interest on Binance has risen from $6.4 billion in March to approximately $8.96 billion currently, returning to the current 180-day moving average of approximately $8.75 billion. This effectively marks the end of the deleveraging cycle. Investors 'return to derivatives markets has clearly driven the current upward rally, but it is too early to call it a true recovery. Despite the continued deterioration of the macro environment, Bitcoin's sharp correction has attracted more speculative traders seeking opportunities for a rebound. It should be noted that this trend remains highly fragile, and once Bitcoin resumes the correction trend that began in October last year, these traders may leave as quickly as they entered.