{"id":517973,"date":"2023-01-30T13:30:38","date_gmt":"2023-01-30T13:30:38","guid":{"rendered":"https:\/\/ktsl888.com\/?p=517973"},"modified":"2024-06-11T10:43:30","modified_gmt":"2024-06-11T10:43:30","slug":"bitcoin-volatility-open-interest-registers-jump","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-volatility-open-interest-registers-jump\/","title":{"rendered":"Bitcoin Volatility Ahead? Open Interest Registers Sharp Jump"},"content":{"rendered":"
On-chain data shows Bitcoin’s open interest has sharply gone up recently, a sign that the crypto’s price may be heading toward more volatility.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, this increase in open interest is the largest observed during the past three months. The “open interest<\/a>” is an indicator that measures the total amount of Bitcoin futures contracts that are currently open on derivative exchanges. The metric accounts for both short and long contracts.<\/p>\n When the value of this metric goes up, it means users are opening new positions on the futures market right now. As leverage usually goes up with investors opening new contracts, this kind of trend can lead to the price of the crypto becoming more volatile.<\/p>\n On the other hand, decreasing values of the indicator imply investors are closing up their positions at the moment. Especially sharp drawdowns suggest mass liquidations have just taken place in the market.<\/p>\n Naturally, when the open interest comes down to low enough values, the price tends to become more stable as there isn’t much leverage present anymore.<\/p>\n Now, here is a chart that shows the trend in the daily percentage change of the Bitcoin open interest over the last few months:<\/p>\n <\/p>\n As displayed in the above graph, the Bitcoin open interest seems to have gone through a very large positive change recently. In this spike, the indicator’s value increased by $700 million, which represented a percentage change of 8.3%, the highest observed during the last three months.<\/p>\nLooks like the value of the metric has been quite high over the past day | Source: CryptoQuant<\/a><\/pre>\n