Bitcoin Futures Drop $1.4B as Spot Buyers Offer Support

Bitcoin’s futures market saw a significant contraction last week, with open interest dropping by $1.4 billion. According to Glassnode’s Oct. 5 Market Pulse, the total futures exposure fell from $38 billion to $36.6 billion. This decline coincided with a rise in the Hot Capital Share, from 18.9% to 19.5%, indicating that recently active capital gained a larger share of the market.

At the same time, the short-term-to-long-term holder supply ratio increased from 13.7% to 14.2%. This metric suggests that younger coin cohorts, which tend to spend more during volatility, are becoming more active. Despite the drop in futures exposure, spot buying improved, with the cumulative volume delta shifting from negative $102.8 million to positive $33.2 million.

Glassnode’s report highlights that while futures exposure decreased, long-side funding payments rose from $926,400 to $1.5 million. This suggests that the contraction in open interest was accompanied by stronger demand for bullish perpetual exposure. However, the report cautions that sustained spot buying remains unproven, leaving the market’s ability to absorb active supply as the next test.

The analysis also notes that holder sensitivity remains a separate risk to watch. Younger cohorts’ growing presence supports continued price sensitivity, but the timing and direction of future spending remain uncertain. The October snapshot shows a smaller derivatives footprint alongside more recently active capital, with improving spot buying providing a counterweight to potential fragility.