The Currency Analytics
By TCA PR
Gradual Rise of Bitcoin Futures Open Interest
Is It Possible for Bitcoin to Continue Its Uptrend?
The total outstanding value of Bitcoin (BTC) futures contracts closed 3.5 billion. Despite not being the price indicator alone, many traders assume that the growing open interest…
On January 14th, the market started art $217.5 billion, and currently, the figure hits at more than $238.8 billion.
The said increased market volatility interestingly fascinated other traders, especially as the BTC futures open interest climbed to $3.5 billion high.
While the buying pressure continues to increase, the open interest in BTC futures can possibly result to more upside.
The tweet reads, “Yesterday’s was a most active session this year for bitcoin futures and busiest since 26th of October. $25bln + going through on our radar.”
“Global open Interest ticked up 15% to $3.5nbln.”
The growing open interest in BTC futures contracts is composed of different derivatives trading platforms, including Binance ($136m), OKEx ($809m), CME Group ($204m), Deribit…
If you are not aware, open interest is the number of open contracts dedicated to the futures market.
In addition, it provides a bigger picture of the amount of money that enters or leaves a market compared to what trade volume does.
So, in the case of BTC, the price is going up recently, along with the underlying futures contracts.
Open interest might not be the only price direction indicator, but most traders use it to figure out how strong the trend is.
As the open interest, volume, and price increase together, the Bitcoin price tends to continue climbing along with strength.
Furthermore, as the price experience a downtrend along with open interest and volume rising, a bearish action tends to continue.