In this post. Bitcoin's open interest reached a record $19.8 billion on CryptoQuant, Coinglass reports over $38 billion.
The #bitcoin open interest market is dominated by physical margin trading, indicating the maturity of the market. Bitcoin has reached $67,000 as the bullish momentum continues and demand shows no signs of abating.
According to CryptoQuant data provided by EgyhashX's chartered analyst, on October 15, bitcoin open interest reached an all-time high of $19.8 billion. This mark indicates the growing demand for the flagship asset and the influx of funds into the #cryptocurrency market over the past few months.
According to EgyhashX, this is a sign of bullish investor sentiment. Funding rates also reached the highest positive level since August, indicating that most of the open interest is directed towards long positions.
he states:
This upward trend in the derivatives market indicates an inflow of liquidity and increased attention to the cryptocurrency sector.
An increase in funding rates also indicates a bullish sentiment among traders.
Open interest in bitcoin is the number of active futures contracts on an asset at a given point in time, and an increase in open interest usually indicates an influx of funds into the asset. While many see an increase in open interest as a good sign for #BTC price growth, others are concerned that high leverage creates volatility risk, as price fluctuations can lead to large-scale liquidations.
However, given that most of the open interest is in cash margin contracts with institutional investors, concerns about volatility may be unfounded: according to Glassnode, most bitcoin futures contracts are in cash, not cryptocurrency margin. Cash margin contracts, unlike cryptocurrency margin futures contracts, are futures contracts whose open interest is margined in U. S. dollars or U. S. dollar-linked stable coins.
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