️ INSIGHT: Bitcoin has risen 35% from its August low while BTC-denominated open interest has fallen nearly 20% to its lowest level since March, according to Glassnode.

What happened

According to Glassnode, Bitcoin has risen 35% from its August low. At the same time, open interest measured in Bitcoin has fallen nearly 20%, reaching its lowest level since March.

Confirmed

Global impact / market context

Open interest is the total value of active Bitcoin futures contracts, which means fewer borrowed bets are outstanding. The price rise without more contracts suggests buying driven by spot demand, not borrowed money, which can reduce the chance of forced selling.

Analyst inference

A 35% price gain alongside a 20% drop in BTC-denominated open interest shows traders closing leveraged positions, not adding them. This means the rally rests on actual Bitcoin purchases rather than futures contracts, a structure that may be steadier but lacks extra fuel from borrowed money.

Analyst inference

What to watch

1. Glassnode reported Bitcoin up 35% from its August low and BTC-denominated open interest down nearly 20% to its lowest level since March. Confirmed
2. Traders could watch whether open interest starts rising again, because new futures contracts would signal that borrowed money is returning and could amplify Bitcoin price moves. Proposed
3. Investors might monitor spot Bitcoin purchases and company capital spending on Bitcoin, since continued buying without added borrowed money would support the current rally structure. Analyst inference

Affected assets

• BTC — Bitcoin

Evidence

• x.com