Data shows the Bitcoin Open Interest has shot up to a new all-time high (ATH), implying speculative interest around BTC has surged.
When the value of the metric rises, it means the investors are opening fresh positions related to the asset. Generally, more positions come up with more leverage for the sector, so the cryptocurrency’s price can become more volatile following an Open Interest jump.
On the other hand, the indicator going down implies traders are either closing positions of their own volition or getting forcibly liquidated by their platform. This kind of trend can clear out leverage, which can naturally make the asset more stable.
Now, here is a chart that shows the trend in the Bitcoin Open Interest over the last few months:
This suggests speculative interest in the coin has gone up. The trend isn’t anything unusual, as rallies tend to attract a lot of attention, and with attention naturally comes repositioning on the derivatives market.
The scale of the rise this time, however, is definitely something worth taking note of. Rapid increases in the indicator alongside a rally can sometimes destabilize it.
Following the latest jump, the Bitcoin Open Interest has touched $45.3 billion, which is a new ATH. “That’s the highest level of leverage the market has EVER seen,” notes the analyst. It now remains to be seen whether the bullish momentum will continue regardless of the intense speculation, or if it will prove to be a warning sign.
This notable positive value implies Coinbase traders are currently participating in a higher amount of buying than Binance users, which is why Bitcoin is going for a higher rate there.
Bitcoin has pushed back toward its ATH as the latest continuation to its recovery run has taken its price to $122,300.
