Bitcoin is rising and open interest in Bitcoin futures or options is hitting new highs. This looks like market activity, but it also suggests that there are a lot of traders entering the market with new Bitcoin contracts, which means they are trying to chase the price with interest in Bitcoin, whether it's going up or down. A significant rise in open interest is a sign of a buildup of long and short positions, and could lead to a mass liquidation if the price moves against these positions. However, if these positions are long, it could support the price to continue rising.
Written by Arab Chain
