The increase in open positions on Deribit provides significant insights into market direction. While the open positions in the futures market can be interpreted differently across various exchanges, an increase in open positions on Deribit has often been a precursor to price rises.
Deribit is known as the heart of the options market. The transactions carried out here are quite different from those on other exchanges. Particularly, the end-of-month expirations in the options market are very important for us, and the best data on this comes from Deribit.
The open positions on Deribit offer important clues regarding market direction. By closely examining past data, we can see that increases in open positions in the futures market have generally led to price rises.
Looking at the most recent data, we observe that prices have risen along with the increase in open positions. As I always say, Deribit acts like the baron of the market. Don't forget to follow it closely. Deribit plays a critical role in understanding market direction and provides valuable information for investors.
Written by datascope