Bitcoin steadies near $86,000 as futures interest drops $1.4 billion

Bitcoin maintained a position near $86,000 on Monday, driven by renewed buying activity in the spot market and a notable decline in futures open interest. According to Glassnode’s latest Market Pulse report for the week ending October 4, the total value of active Bitcoin futures contracts dropped by $1.4 billion, from $38.0 billion to $36.6 billion. This decline indicates a cooling of speculative trading that had surged during Bitcoin’s recent price rally.

Despite the reduction in futures open interest, demand for bullish exposure in perpetual futures contracts rose, as evidenced by higher funding rates. The cumulative volume delta, which measures the balance between buyer and seller activity, shifted from negative $102.8 million to positive $33.2 million. This suggests that buyer-driven trades dominated the week, although it does not necessarily reflect new capital inflows. Exchange-traded fund (ETF) demand remained positive but saw smaller inflows compared to previous weeks.

On-chain metrics revealed increased Bitcoin network activity. Glassnode’s Hot Capital Share rose from 18.9% to 19.5%, indicating active capital rotation. The ratio of supply held by short-term holders compared to long-term holders also increased slightly, from 13.7% to 14.2%. This ratio suggests that short-term holders, who are more likely to sell during volatility, now hold a larger share of Bitcoin’s supply.

Overall network activity remained strong, with high levels of active addresses, transaction fees, and transfer volume. Nearly 75% of Bitcoin’s supply was in profit, and profitability indicators stayed elevated. As of the latest report, Bitcoin was trading at $85,987, marking a 0.17% gain over 24 hours and a 2.64% increase over the past week.