Bitcoin traded at $77,367 on October 31, recovering from earlier selloff pressure. However, the composition of any recovery matters more than price levels alone, as multiple market signals suggest underlying fragility in demand.
Following the shock-driven liquidations, derivatives positions showed mixed signals. Block Scholes reported $1.53 billion in crypto-wide liquidations over 24 hours on October 30, with 84% in long positions. Yet despite these forced closures, open interest metrics showed concerning developments.
Open interest on Binance's BTC-USDT perpetual rose 4.5% between October 29 and October 30. Broader data from Coinalyze displayed $28 billion in aggregate Bitcoin open interest across selected contracts on October 31, up 3% over its 24-hour comparison. These readings indicate positions were rebuilt even as others were being closed out, suggesting renewed leverage accumulation rather than a genuine deleveraging.
Funding rates offered limited reassurance. Bitcoin funding on Binance remained positive during the shock, with Coinalyze displaying current funding at +0.01% for Binance's USDT contract and +0.0065% for Bybit's USDT contract on October 31. Positive funding means long position holders pay shorts, but this metric does not measure how many contracts remain open or the actual margin risk being carried.
Spot market demand, a crucial indicator of organic recovery, showed weakness. According to Farside Investors, US spot Bitcoin ETFs recorded net outflows of $643 million in the October 30 session, the last completed trading day of the month.
A more durable recovery would require sustained spot buying pressure combined with restrained derivatives exposure and stable funding costs. Instead, the current picture shows positions being rebuilt while institutional inflows decline. The upcoming October 2026 Employment Situation report scheduled for November 6 could further test market conditions through its implications for interest rates and financial conditions.
