"Bitcoin (BTC) Open Interest Surges 9.9% in Hours... Concerns Over Increased Volatility"
Summary
- "The open interest of Bitcoin (BTC) increased by 9.9% in just a few hours."
- "Such leverage expansion signals significant volatility, according to analyst Maartunn."
- "An increase in open interest indicates a flow of funds into the market, which can increase the volatility of coin prices."
In the virtual asset (cryptocurrency) derivatives market, the open interest (OI) of Bitcoin (BTC) has surged, raising the possibility of increased short-term volatility.
On the 11th, virtual asset analyst Maartunn stated on X (formerly Twitter), "Bitcoin's OI increased by 9.9% from $24.3 billion to $26.7 billion in just a few hours," adding, "Such leverage expansion is usually a precursor to significant volatility. Be well prepared."
Meanwhile, open interest refers to the number of contracts in the derivatives market that traders have not yet liquidated. An increase in open interest indicates that funds are flowing into the market.
Generally, as open interest increases, the likelihood of increased volatility in coin prices rises.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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