After a stagnant period of price record, Bitcoin is nearing the $9000k mark. The novel coronavirus pandemic situation has seen Bitcoin remaining stable over the few months. It has also seen the volatility of the price drop extensively.
At present the crypto exchange interest is also on a surge. A recent data released by Skew shows that open interest for Bitcoin has been on a constant rise. The data shows that it has reached a new high at $434 million on July 14 for the Tether (USDT) and USD pairs combined.
EOS, Ether (ETH) and XRP are the cryptocurrencies which have seen the drastic rise. The open interest could pour in plenty of new investors in the world of cryptocurrency which is on a constant boom.
Open interest denotes the value which has been locked in the derivatives. It could be a futures or option contract and could see investors spend money flows into and out of these contracts.
The co-founder and CEO of Bybit, Ben Zhou said that, when there is market volatility the volume spikes. He also added that when more users enter the market the interest increases.
“When there is market volatility, volume spikes. However, when more users enter the market, open interest would naturally increase. Recently, we have seen more users registering and I do believe that this is a clear indicator that a bullish market is upon us,” Zhou told Cointelegraph.
Incidentally, not much has changed with the Bitcoin price over the last few months. It has also seen that several DeFI space which includes the Chainlink, Compound and Aave has overshadowed the performance of Bitcoin.