BitcoinWorld

Crypto News News

Bitcoin Futures Open Interest Hits Highs of November 2021 as BTC Surge Past $52,000

Bitcoin Futures Open Interest Hits Highs of November 2021 as BTC Surge Past $52,000

The notional open interest of Bitcoin futures contracts has climbed to a 26-month high of $21 billion, fueling optimism about the leading cryptocurrency’s recent price rally. 

However, experts urge caution, highlighting potential risks associated with this leveraged trading surge.

Data from CoinGlass reveals the growing interest in Bitcoin futures, reflecting an influx of bullish bets alongside the recent 28% price increase. 

This coincides with the launch of spot Bitcoin ETFs in the US, which saw significant inflows over the past three weeks.

See Also: BONK Surged 13% Following Potential Partnership With Revolut On Learn & Earn Deal

Leverage, while amplifying potential profits, also magnifies losses. A significant rise in open interest can indicate impending price volatility. 

However, current data suggests moderate leverage levels, reducing the immediate risk of mass liquidations triggering a potential crash.

Bitcoin’s estimated leverage ratio is currently at 0.20, still far below the August 2022 peak, according to CryptoQuant.

Additionally, open interest in terms of actual Bitcoin (430,500) remains below the October 2022 high of 660,000.

Disclaimer: The information provided is not trading nor financial advice. Bitcoinworld.co.in holds no liability for any trading or investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any trading or investment decisions.

#Binance #WRITE2EARN

 

Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.