An open interest for Bitcoin comes from 10,000 BTC, which means an increase of 8% which could shake the price of BTC even more than it has already done.
Summary
- An interest open to Binance jumped by 10,000 BTC for BTCUSDT, indicating large waves.
- An open peak could lead to an increase or a price assessment.
According to Coinglass data, Binance Total BTC (BTC) Futures for Open Interest is currently at 136,190 BTC or worth around $ 15.74 billion. In the past 24 hours, the total interest rate of open bitcoin has increased by 5.74%, most of it from CME and Binance.
Based on chain monitoring, up to 10,000 BTC ($ 116 million) has just been added to the BTCUSDT pair in Binance (USDT). Given that the term contracts on binance contribute to around 17.77% of the total amount of open interest, this indicates a great chance that the main price movements can be on the horizon.
At the time of the press, Bitcoin was under the weather, decreasing after just dropping from its previous summit at $ 119,415. Until now, it has dropped by 2.09% in the last 24 hours and is currently negotiating at $ 116,157.
The overvoltage of the open interests of Bitcoin could shake up the prices
An addition of 10,000 BTC would represent a overvoltage in a time of 8% to 9% of the open interest of Binance BTCUSDT. This is an important construction in short or long positioning over a short period. A decision like this could lead to a sudden influx of capital with speculative leverage, which increases the risk of liquidation cascades and volatile fluctuations if the prices suddenly move.
Open interest is the total number of contracts that have not yet been settled or closed. In terms of crypto, the open interest follows all the term contracts in circulation on BTC and represents the lever effect or the bets which have not been settled on the chain.
When the open interest is high, especially after a sudden jump, there is more and more likely that the movements trigger forced liquidations. If BTC points or fall too much, these future can be forced to leave their positions. This could lead to amplified price movements in the near future.
In the past, high open interest has led the BTC to reach peaks of all time. More recently, this has happened towards the end of May when Bitcoin’s value reached a summit of $ 111,970 at the same time as the open interest of Bitcoin at 80.91 billion dollars.
