The post Will Shorts Be Rekt This Time? appeared on BitcoinEthereumNews.com.

Data shows the Bitcoin Open Interest on exchanges has been heading up while the Funding Rate has turned negative recently. Bitcoin Open Interest Trend Suggests Speculators Are Back As pointed out by CryptoQuant community manager Maartunn in a new post on X, things appear to be heating up on the derivatives side of the market. There are two indicators of relevance here: Open Interest and Funding Rate. Related Reading The first of these, the Open Interest, keeps track of the total amount of derivatives contracts related to Bitcoin, whether short or long positions, that are currently open on all exchanges. When the value of this metric goes up, it means the investors are opening up fresh positions on the market right now. As new positions generally come with an increase in the overall leverage present in the sector, this kind of trend can lead to higher volatility for the asset. On the other hand, the indicator’s value observing a decline implies investors either are closing up positions of their own volition or are getting liquidated by their platform. The coin’s price may become more stable following this trend. Now, here is a chart that shows the trend in the Bitcoin Open Interest over the past few days: The value of the metric appears to have been heading up recently | Source: @JA_Maartun on X As displayed in the above graph, the Bitcoin Open Interest had taken a plunge earlier as a result of the cryptocurrency’s decline towards the $58,000 level, which had induced the liquidation of a significant amount of long positions. After observing some sideways movement, the metric has been on its way back up again, suggesting investors have been opening new positions. This speculative activity can naturally lead to more volatility for the asset. In theory, such volatility…

---

Filed under: News - @ August 30, 2024 7:26 pm