Bitcoin open interest is down 55% from its all-time high — the deepest wipeout since April 2023.

What this means:

• Billions in leveraged positions closed
• Excess speculation removed from the system
• Funding pressure cooling off
• Market shifting from euphoric to defensive

When open interest collapses this hard, it usually signals one of two things:

1️⃣ Forced liquidations + panic unwind
2️⃣ A structural reset before the next expansion phase

High OI = crowded trade.
Falling OI = leverage getting destroyed.

Historically, major drawdowns in open interest often happen near local bottoms — when weak hands are gone and volatility peaks.

One thing is clear —
Speculative excess just got erased.