[Analysis: Bitcoin Open Interest Down 30% from Last October's Peak, Laying the Groundwork for a Bull Market Rebound] According to Cointelegraph, CryptoQuant data shows that open interest (OI) in the Bitcoin derivatives market has dropped by approximately 30% since last October. Analysts point out that this 'deleveraging signal' helps clear the excessive leverage accumulated in the market. Historically, similar significant declines have often marked key market bottoms, laying a more solid foundation for potential bullish recoveries. However, if Bitcoin's price continues to fall and fully enters a bear market, open interest may shrink further, indicating deeper deleveraging and an extended adjustment period. On October 6 last year, Bitcoin's open interest reached a historic peak of over $15 billion. Currently, with prices rising alongside a decline in open interest, it typically suggests that leveraged short positions are being closed or liquidated. This 'short squeeze' scenario could be favorable for Bitcoin, as price increases are driven more by spot buying rather than excessive leverage. However, derivatives provider Greeks Live noted that the derivatives market has not yet entered a structurally bullish phase, and the current trading structure appears more like a passive reaction to the sudden price surge.