Recently, BitMEX CEO Arthur Hayes claimed that Bitcoin may have bottomed out. Hayes believes that the forced sale of Bitcoin by centralized lending companies and Bitcoin miners may be over.
Those who have had to liquidate their holdings have long since done so. Since most centralized crypto lending firms are already in trouble, they are no longer making loans or collateral for liquidation.
Furthermore, the bullish forecast hinges on the assumption that the Fed will have to turn to dovish monetary policy to stabilize the Treasury market in 2023. That should boost risk assets. Hayes noted that open interest (the sum of open interest across derivatives exchanges) has fallen to its lowest level since early 2021.
It is not ruled out that if there is a sideways bear market, the OP may fall further. However, such a depressed market is unlikely to generate large liquidations, which means that OI will not change quickly.