Bitcoin Futures Open Interest Declines as Spot Buying Sentiment Improves

Bitcoin’s aggregate futures open interest contracted from $38.0 billion to $36.6 billion in the week leading up to Oct. 4, according to Glassnode’s Market Pulse report. Despite the decline in total derivatives exposure, the market saw an increase in bullish perpetual demand, with long-side funding payments rising from $926,400 to $1.5 million.

The report highlighted a shift in spot market activity, with the cumulative volume delta moving from negative $102.8 million to positive $33.2 million. This improvement indicates a transition toward buyer-initiated trades, though the data does not quantify the influx of new capital.

Data on holder activity suggests a rise in the presence of recently active capital. The Hot Capital Share increased from 18.9% to 19.5%, while the ratio of short-term holder supply to long-term holder supply climbed from 13.7% to 14.2%.

Glassnode notes that younger coin cohorts are generally more prone to spending during periods of volatility. The current market environment presents a test of whether sustained spot demand can effectively absorb this active supply.

While the reduction in futures open interest suggests a smaller nominal derivatives footprint, the remaining exposure stays near the upper end of Glassnode’s statistical range. Traders are watching to see if spot buying continues to temper fragility concerns or if renewed selling pressure emerges alongside shifts in holder profitability.