Bitcoin Open Interest Plunges 13.5% Ahead of Fed Agenda

The Bitcoin market has seen a significant drop in open interest ahead of this week's critical headlines. According to Santiment Intelligence data, the total position size in the market has decreased by 13.5% in the past week.

This decline corresponds to a drop of 43,346 BTC from September 3 to September 11, when open interest fell from 321,497 BTC to 278,151 BTC. During the same period, the Bitcoin price declined by approximately 5%, but Santiment notes that this alone does not explain the movement in open interest.

The positioning in Bitcoin is now about 20% lower than before the mid-August rally, with a limited recovery observed on September 11 and the following two sessions. The de-risking process took place before Tuesday's vote and Wednesday's Fed agenda, according to Santiment's assessment.