The open interest rate in Bitcoin (BTC) has increased to a degree that may indicate a possible correction.
Reflecting the proportion of the total transaction volume opened for a cryptocurrency open interest Bitcoin has reached overheating level. Data provided by CryptoQuant shows that open interest in Bitcoin historically third highest level showed its rise. Previously, open interest at this level was only 2021 And 2022 It was seen in 2017 and accompanied by significant decreases.
On the other hand, high open interest rate is a problem for Bitcoin bulls. driving force Analysts state that it can also function as At least that’s how it’s been working so far noted.
It is thought that open interest, which has historically reached such high levels, may also have been triggered by the cash flow entering the market thanks to the spot Bitcoin exchange-traded fund (ETF):
Open interest has only been higher than the current level twice before; once in 2021 and once in 2022. Should we consider the current high open interest as a harbinger of a significant correction, as it has in the past, or as a sign of the spot Bitcoin ETF era?