When prices drop sharply, a decrease in open interest means both long and short positions are exiting. Longs are being liquidated or stopped out, while shorts are taking profits.

With large liquidations and a low funding rate, further significant liquidations are unlikely, as primary short positions have mostly been closed.

Therefore, the market is likely to enter a consolidation phase rather than reversing immediately

BTC and ETH contract holdings have both significantly decreased, and leverage in the market has been nearly wiped out, especially for ETH leverage

Rose🌹F4F

@stephenpalma35