Bitcoin Is Headed For Its Best Quarter In Nearly 2 Years – But Traders Are Using Less Leverage

Bitcoin (BTC) is heading toward its strongest quarter since late 2024, but the rally's structure may be as notable as its size.

BTC is up about 42% in the third quarter, according to CoinGlass data -- putting it on track for its best quarterly performance since Q4 2024, when it rose 47%. At the same time, Bitcoin open interest has fallen roughly 20% from earlier September levels, suggesting traders have been reducing leveraged exposure even as prices climbed.

It would also be Bitcoin’s second-best third quarter on record, behind a gain of 80.41% in 2017, CoinGlass data showed.

Bitcoin Open Interest Falls 

Bitcoin's rally has coincided with a fall in derivatives positioning rather than an increase in leverage, even as BTC prices rose.

Data from Santiment showed total open interest for Bitcoin declined to about $21.14 billion on Wednesday. That's down from more than $25 billion earlier this month. Bitcoin’s slump in open interest came as it traded near recent highs.

Bitcoin rose 35% from its August low, while coin-denominated open interest fell nearly 20%, Glassnode said in a post on X. The analytics firm said open interest was at its lowest level since March. Glassnode explained further that this could make the rally less exposed to leverage flushes.