Data shows the Bitcoin Open Interest has observed a sharp surge during the past day. Here’s what this could lead to for the cryptocurrency.
Bitcoin Open Interest Has Just Shot Up By Almost 10%
In a new post on X, CryptoQuant community analyst Maartunn has discussed about the latest trend in the Open Interest for Bitcoin. The “Open Interest” refers to an indicator that keeps track of the total amount of positions related to BTC that are currently open on all derivatives exchanges.
When the value of this metric rises, it means the investors are opening up more positions on these platforms. As the total leverage in the market tends to go up when new positions appear, this kind of trend can lead to more volatility for the asset’s price.
On the other hand, the indicator registering a decline suggests the holders are either closing up positions of their own volition or getting forcibly liquidated by their platform. Whatever the case be, the cryptocurrency can act in a more stable manner following such a trend.
Now, here is the chart shared by the analyst that shows the trend in the Bitcoin Open Interest over the last month:
The value of the metric appears to be sharply going up at the moment | Source: @JA_Maartunn on X
As is visible in the above graph, the Bitcoin Open Interest earlier saw a sharp decline as the price of the cryptocurrency itself went down amid all the tariff panic. With the asset’s recovery that has occurred after the announcement of a 90-day pause in the tariffs by US President Donald Trump, the indicator seems to have shot back up again.
During the past day, the metric has gone from $24.3 billion to $26.7 billion, representing an increase of around 9.9%. Generally, a rise in the indicator is normal whenever there is notable news surrounding the market or volatile price action, as investors tend to speculate more during such periods.
A spike in the Open Interest can be worrying, however, when its scale is large and it occurs suddenly. In the chart, Maartunn has highlighted the previous instances of the indicator rising in a sharp manner during the last few weeks.
It would appear that most of these led into significant volatility for Bitcoin. The volatility wasn’t of just any kind, but towards a net downside, meaning that the latest rise in the Open Interest could also prove to be bearish for the coin.
It only remains to be seen, though, how things would develop in the coming days for the cryptocurrency’s price.
BTC Price
Bitcoin has continued its latest attempt at recovery over the last 24 hours as its price has now reached the $84,000 level.
Looks like the price of the coin has been climbing up in recent days | Source: BTCUSDT on TradingView
