Bitcoin open interest just hit its lowest level since 2022, signaling a major deleveraging event across the market. The massive unwinding of leveraged positions reflects traders pulling back and significantly reducing their risk exposure.

Historically, these low open interest points have proven critical. They often precede extended consolidation periods—or surprisingly, they mark the very beginning of bullish reversals. When leverage gets this thin, the market structure shifts fundamentally.

Right now, fewer leveraged bets mean calmer market conditions on the surface. But it's also worth noting: markets don't stay this way forever. Lower leverage can set the stage for powerful moves once new capital re-enters. Keep an eye on this setup.