Bitcoin open interest grows, traders warned of trend change
The open interest metric for bitcoin has increased by $2 billion in 3 days. Traders are being warned of a possible sharp trend change.
Open interest - OI - for bitcoin has increased by $2 billion in 3 days. As of June 6, the OI is $37 billion, according to CoinGlass. And that has observers worried.
Open interest is the total number of contracts (for example, futures and options) that are outstanding. Their large volume has the potential to increase volatility, as traders hold multiple positions each and can suddenly change their strategy.
At the time of writing, bitcoin is in a positive trend and its exchange rate has reached $71,000. But BitLab Academy believes that the high OI and premium for traders could lead to a sudden change in trends.
Anonymous trader Jelle admits that almost $2 billion worth of long positions will be âwiped outâ and the BTC rate will roll back to $68,000.
The growth of BTC is also attributed to the inflow of capital into ETFs. According to data on U.S. spot Bitcoin ETFs for June 3, $886 million has flowed into the instruments. This is the second best result since the launch of the ETF.
