Open interest in BTC futures close to record high in November 2021
Open Interest (Open Interest) futures trading on bitcoin (BTC) exceeded $21 billion. And is approaching the record of $24 billion, recorded in mid-November 2021. And when bitcoin cost $65 thousand, writes CoinDesk with reference to data from the analytical service Coinglass.
In traditional trading under the open interest (Open Interest) is understood as the total number of purchase orders. Which are available at the time of market opening. In futures and options trading, Open Interest is the total number of contracts outstanding at a given point in time. This includes futures contracts that have not yet been exercised, have not yet expired, or have not been settled by delivery of the underlying assets.
Open interest serves as a metric for assessing the level of involvement of market participants in a particular futures contract. An active growth in open interest combined with an increase in the price of the asset may indicate an active upward movement.
The rise in interest in futures has coincided with the BTC price rising more than 25% over the past three weeks. And driven mainly by large-scale investments in spot bitcoin ETFs in the US.
The overall credit load in the market remains low. And that reduces the risk of price collapse and high volatility due to forced closure of long or short positions due to lack of collateral. According to CryptoQuant, bitcoin's leverage ratio recently increased slightly from 0.18 to 0.20, but is still far from last year's levels.
Our experts note that Open interest in bitcoin-denominated futures currently stands at 430,500 bitcoins. And that is well below the October 2022 peak of 660,000 bitcoins, according to CoinGlass data. $BTC
