Bitcoin OI Passes $15 bn 20% Price Crash
Bitcoin’s price fell towards $34,500 on November 7 due to a sharp increase in open interest (OI) on derivatives markets.
The largest cryptocurrency struggled to reclaim $35,000 as support, but market participants predicted volatility would soon return due to the sharp increase in OI.
Open interest reaching elevated levels has coincided with bouts of volatility in recent months. James Van Straten, research and data analyst at crypto insights firm CryptoSlate, described the fluctuations as “noticeable.”
The CME exchange, preferred by institutional investors, has achieved a new record in open interest, with 105,380 BTC contracts open, valued at $3.68 billion.
Binance has edged past this figure with open interest of approximately 113,500 BTC. The trend points to increasing involvement in Bitcoin futures, hinting at either a positive shift in market mood or a move towards protective strategies by investors. J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, suggested that OI was now in territory which had previously seen 20% BTC price drawdowns.
(With inputs from Shikha Singh)
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