Bitcoin Open Interest Collapses to 12%. Is the Short Squeeze Over?

Bitcoin derivatives open interest has collapsed to about 12%, reflecting large-scale liquidation of leveraged positions and signaling that the recent short squeeze has largely run its course. With much of the leverage removed, the forced-buying pressure that drove rapid upside is likely exhausted, reducing near-term volatility and the probability of another immediate sprint higher. The key implication for Bitcoin is a transition toward consolidation or a controlled pullback rather than a continuation of a squeeze-driven rally, lowering systemic leverage risk but also diminishing momentum for new highs.