Data shows that Bitcoin financing rates remain calm throughout the exchange, suggesting that investors have not yet issued too much hype around BTC.
The average Bitcoin futures financing rate is currently hovering around 0.007%.
In its latest weekly report, analytics firm GlassNode discusses how open interest and funding rates have changed in relation to the Bitcoin futures market.
First, “open interest” refers to an indicator that currently opens the total number of BTC-related futures positions in all centralized exchanges.
Here is a chart of the metrics shared by the analytics firm in the report:
Looks like the value of the indicator has been going down in recent weeks | Source: Glassnode's The Week Onchain - Week 19, 2025
As shown in the above chart, Bitcoin futures open interest rose as the rise was rising as the cryptocurrency surge continued, but the indicator dropped sharply as the surge in cryptocurrencies continued.
This decline is due to large-scale liquidation events involving short holders. “Liquidation” here refers to the powerful closure that any open contract will suffer when accumulating a certain degree of loss.
Investors who bet on assets during rallying may be caught off guard, many of whom end up crossing the liquidation threshold.
Before a brief squeeze, Bitcoin’s open interest was worth 370,000 BTC, but it has now dropped to 336,000 BTC, meaning a drop of about 10%. “This reduction gives us a sense of scale for the size of the short squeeze,” GlassNode noted.
Typically, an increase in open interest may lead to more volatility in assets as it increases the risk of violent mass liquidation incidents. On the other hand, the decline may cause the price to remain still.
So, with the recent 10% drop in Bitcoin open interest, another squeeze that may occur may be unlikely to happen, and the market may behave in a more stable way.
While the trend of open interest tells us the overall situation of the industry, it does not contain any information on how positions divide between shorts and desires. Another indicator called the funding rate may help to know this.
The funding rate measures the total cyclical expenses between investors in the futures market. Below is a chart showing the trends and their averages for the indicator values, respectively, for the main platforms.
The changes in the Funding Rates across the major exchanges during the last couple of years | Source: Glassnode's The Week Onchain - Week 19, 2025
As shown in the figure, the average funding rate of Bitcoin is currently positive, indicating that long-term investors are dominant. That is, bullish sentiment is less strong compared to the past, as the indicator is worth only 0.007%.
BTC price
Bitcoin has been moving sideways lately as its price is still around $103,800.
The trend in the BTC price over the past month | Source: BTCUSDT on TradingView
Dall-E, Featured Images of GlassNode.com, Charts of TradingView.com
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