Bitcoin Futures Overheat With $1.5 Billion Jump As BTC Breaks $44k
25 Marzo 2022 - 01:00PM
NEWSBTC
On-chain data shows Bitcoin futures open interest has jumped up
more than $1.5 billion in just a few hours as the crypto’s price
breaks past $44k again. Bitcoin Futures Open Interest Adds More
Than $1.5 Billion Within A Few Hours As pointed out by an analyst
in a CryptoQuant post, the BTC open interest has shot up over the
past day as the coin’s price has observed a surge. The “open
interest” is an indicator that measures the total amount of Bitcoin
futures contracts currently open on all derivatives exchanges. When
the value of this metric is rising, it means more futures positions
are opening up on exchanges. This leads to higher leverage in the
market, and can result in more volatility. On the other hand, the
open interest’s value going down suggests investors are closing up
their positions as they pull out of the market. As leverage lowers
during this trend, it can lead to lesser volatility in the price of
Bitcoin. Now, here is a chart that shows the trend in the Bitcoin
open interest over the past month: Looks like the value of the
indicator has surged up over the past day | Source: CryptoQuant As
you can see in the above graph, the BTC open interest observed a
sharp rise within the last 24 hours as the coin’s price enjoyed an
uptrend. Related Reading | Ethereum Will Continue To
Outperform Bitcoin, Here’s The Indicator That Says So The value of
the metric jumped more than $1.5 billion in just the matter of a
few hours, taking the total open interest to $13.6 billion. Also,
as the chart shows, there were two similar sharp spikes twice
within the past thirty days where the price also saw an increase.
Related Reading | Quant Explains How Stablecoin Ratio Can Give
Bitcoin Buy Or Sell Signals However, not long after this trend, the
price plummeted down along with the open interest. If similar trend
follows this time as well, the current uplifted value of the coin
may not last long before a retrace is seen. Though, there is a
chance that things go differently this time. The increase in the
Bitcoin open interest is much sharper than the other instances. BTC
Price Yesterday, Bitcoin’s price broke past $44k for the first time
since start of March. So far, the coin has maintained above this
level as at the time of writing, it floats around $44.6k, up 10% in
the last seven days. Over the past month, the crypto has gained 15%
in value. The below chart shows the trend in the price of the coin
over the last five days. The price of BTC seems to have observed
some sharp uptrend over the last few days | Source: BTCUSD on
TradingView Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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