Experts from the analytical platform CryptoQuant reported a record increase in open interest (OI) for Bitcoin over 24 hours, calling it 'the largest in some time' [web:0]. According to the data, OI rose by 17.4%, which occurred due to activity in the derivatives market. Analysts note that such spikes often indicate speculative frenzy, but warn: such moves driven by derivatives usually lack sustainability [web:0].
In November and December 2024, the growth of OI by 16.4% and 15% was accompanied by a rise in the price of Bitcoin by 10.2% and 7.3% respectively. However, this time, despite an OI of 17.4%, the price only increased by 4.2%, which may indicate strong selling pressure [web:0]. This raises concerns among investors, as high open interest could lead to cascading liquidations, as was the case in August 2024 when Bitcoin fell by 20% [web:18].
Experts advise traders to be cautious, as the market remains volatile. Stay tuned for updates so you don’t miss important changes! Subscribe to #MiningUpdates for current news.
#Bitcoin #CryptoQuant #OpenInterest #CryptoNews #MarketTrends
