The chart below shows an oscillator for the percent change of futures open interest. This tool can be used to spot periods of rapid change in aggregate market leverage.
đŽ High values indicate OI has increased by +2 standard deviations.
đ” Low values indicate OI has decreased by -2 standard deviations.
We can see that there was a significant deleveraging event on 3-January where almost $1.5B of OI was closed out in a single day. Conversely, OI increased significantly between 9 and 11 January as ETF speculation peaked, and prices approached $49K.
This was greeted by a weekend sell-off back down to $40k, with new owners of ETF shares introduced to Bitcoin's 24/7 trading environment.
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