[Analysis] "Binance Open Interest Surges... Signal of 'Bullish Momentum' Recovery"

An analysis has emerged that the open interest (OI) on the global cryptocurrency exchange Binance is surging.

Darkpost, a contributor to CryptoQuant, stated on the 22nd through CryptoQuant, "Binance's open interest is surging," and "this is a signal that Bitcoin (BTC) is recovering its bullish momentum." He noted, "An increase in open interest generally provides momentum to the market and can lead to a strong upward trend, but such rises often have vulnerable aspects."

The importance of derivatives data was also mentioned. Darkpost said, "With derivatives trading volume overwhelming the spot market or exchange-traded funds (ETFs), tracking the trends in the derivatives market is essential in the current market structure," and "derivatives activity can have a significant impact on Bitcoin prices, making related on-chain data very important."

Darkpost emphasized, "Currently, Binance's open interest has not reached an all-time high (ATH)." He continued, "This suggests that the derivatives market may not have entered a full-blown overheating phase."