Bitcoin derivatives open interest has decreased by 30% since October, indicating a potential market bottom and recovery, according to CryptoQuant. The decline in open interest, which refers to unsettled crypto derivatives contracts, suggests a deleveraging process that historically marks significant market bottoms. Analyst "Darkfost" noted that this reduction in leverage could create a stronger base for a bullish recovery, although further declines could signal deeper market corrections. The open interest in Bitcoin derivatives markets reached an all-time high of over $15 billion in October 2025, tripling from the previous bull market peak in November 2021. Currently, total Bitcoin open interest across all exchanges is around $65 billion, down 28% from its peak. Despite the recent price rally, the derivatives market has not yet entered a structurally bullish phase, with the current trading structure appearing reactive to recent price surges.