Data shows the Bitcoin Open Interest has shot up by $1.8 billion as the cryptocurrency’s price has broken the $27,000 level. Bitcoin Open Interest Has Exploded During The Past Day The “Open Interest” indicator keeps track of the total amount of Bitcoin futures contracts currently open on all derivative exchange platforms. When the value of this metric rises, it means that the investors are opening up new positions on the market right now. Generally, the cryptocurrency becomes more likely to display volatility when this happens, as new contracts usually imply an increase in the total leverage in the sector (“leverage” naturally being the loan amount holders can opt to take against their positions). On the other hand, the indicator going down implies that a net amount of contracts are either closing up or getting liquidated. The asset may become more calmer following such a trend. Related Reading: Jordan Peterson Sparks Debate On How Bitcoin Can Solve Major Banking Problem Now, here is a chart from CoinGlass that shows the trend in the Bitcoin Open Interest over the year 2 ..
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