[Analysis] "Bitcoin Open Interest Surges by 1.3 Trillion Won in 3 Hours... Caution on Short-term Volatility"
Minseung Kang
Summary
- It was reported that Bitcoin's open interest has increased by more than 1.368 trillion won in just 3 hours.
- This surge could lead to price swings if excessive leverage flows in over the weekend amid Bitcoin's bullish trend.
- This indicates that new funds are entering the market, and the increase in open interest could heighten the potential for asset price volatility.
Bitcoin (BTC) open interest (OI) has recently surged, raising concerns about short-term price volatility.
On the 25th, cryptocurrency analyst Daan Crypto Trades reported on X (formerly Twitter) that "Bitcoin's open interest has increased by over $1 billion (approximately 1.368 trillion won) in the last 3 hours," warning that "as Bitcoin remains bullish, excessive leverage over the weekend could lead to unexpected price swings."
Meanwhile, open interest refers to the total number of outstanding contracts in the derivatives market. An increase in this figure indicates that new funds are flowing into the market, and generally, as open interest rises, the potential for asset price volatility also increases.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.![[Market] Bitcoin falls below $71,000…Lowest level since October 2024](https://media.bloomingbit.io/PROD/news/0e5880b9-61dd-49d4-9d2e-c47a3fb33a93.webp?w=250)
