Bitcoin News Today: Bitcoin Plummets 6% as Open Interest Surges to $44.5B All-Time High

Bitcoin’s price dropped to $115,002 on July 11, 2025, a 6% decline from its July 14 record high, while open interest for the cryptocurrency surged to an all-time high of $44.5 billion. The divergence between the falling price and rising leveraged trading activity underscores heightened volatility and aggressive positioning by traders. According to CryptoQuant contributor Arab Chain, the simultaneous rise in open interest and price correction indicates that speculators, particularly those using leverage, are increasingly driving market dynamics. This trend amplifies the risk of abrupt liquidations should the price trend reverse, as leveraged positions could trigger cascading sell-offs [1].

The surge in open interest highlights a shift in market sentiment. On Binance, Bitcoin’s perpetual contracts briefly outpaced the spot price, creating a positive spread of approximately 0.5%. This dynamic, noted by CryptoQuant analyst BorisVest, signals growing long-side pressure as traders bet on short-term rebounds despite ongoing downward momentum [2]. Earlier in the week, a brief rally to $120,000—widely regarded as a psychological resistance level—sparked a wave of retail long positions. However, larger market participants capitalized on this level to execute sell orders, dragging the price back down. This pattern suggests traders are acting swiftly on price fluctuations without waiting for clear directional signals, increasing the market’s susceptibility to sudden shifts [3].

Technical indicators further underscore the weakening bullish momentum. On the daily chart, Bitcoin fell below the 20-day Bollinger Bands’ middle line at $116,305, bringing it closer to the lower band near $109,000, which could serve as a temporary support level. The relative strength index (RSI) has dropped to 52.58, reflecting diminished upward momentum. A sustained break below $109,000 could trigger further selling, while a recovery above $120,000 would signal buyers regaining control. However, with leveraged positions concentrated in the system, even minor price reversals could spark cascading liquidations [4].

Market participants remain divided on Bitcoin’s trajectory. While some interpret the record open interest as a sign of resilience—suggesting strong demand for leveraged exposure—others caution that excessive leverage increases systemic fragility. Arab Chain emphasized that the current environment favors short-term traders over long-term holders, as leveraged positions often amplify short-term volatility at the expense of sustained growth. This dynamic could prolong the current consolidation phase, with outcomes hinging on whether buyers can stabilize the $116,000–$117,000 range or if bearish pressure gains the upper hand [5].

Source: [1] [Bitcoin’s open interest hits $44B all-time high as BTC falls] [https://crypto.news/bitcoin-open-interest-all-time-high-btc-price-2025/].

[2] [Bitcoin’s open interest hits $44B all-time high as BTC falls] [https://crypto.news/bitcoin-open-interest-all-time-high-btc-price-2025/].

[3] [Bitcoin’s open interest hits $44B all-time high as BTC falls] [https://crypto.news/bitcoin-open-interest-all-time-high-btc-price-2025/].

[4] [Bitcoin’s open interest hits $44B all-time high as BTC falls] [https://crypto.news/bitcoin-open-interest-all-time-high-btc-price-2025/].

[5] [Bitcoin’s open interest hits $44B all-time high as BTC falls] [https://crypto.news/bitcoin-open-interest-all-time-high-btc-price-2025/].