Open interest in bitcoin futures nearly doubled

Open interest in bitcoin futures nearly doubled
CONTENT

  • Open interest in bitcoin has risen markedly over the past two weeks.

  • Bitcoin dominance rises for four weeks in a row.

International consortium of news organizations developing transparency standards.

Open interest in bitcoin futures has nearly doubled in the last couple of weeks, jumping from levels below 6K to nearly 10K contracts. As a result, the number of contracts reached a record high.

Open interest in bitcoin futures nearly doubled

Tech analyst and trader Tom McClellan, who has over 36,000 Twitter followers, has drawn attention to this trend..

Open Interest is the total number of open Bitcoin futures contracts or positions not closed by a buyer or seller.

Open interest is not a reliable indicator of Bitcoin’s future performance, but it does provide some insight into market activity in general. When open interest is at a very low level, it indicates low market activity, and vice versa.

BTC dominance level

Bitcoin’s dominance rate began to slow as it closed its fourth straight week of growth. If this trend continues, the situation on the altcoin market may worsen.

The dominance level, which measures the size of the total market capitalization of bitcoin, is showing good dynamics in the second quarter. After rising to 70% in January, a month later the figure dropped to 62%.

Open interest in bitcoin futures nearly doubled

The indicator peaked at 69% on May 8, when the price touched a local high at $ 10,000, after which it partially corrected.

As of this writing, bitcoin dominance has recovered to 68.2%.

The indicator has become less volatile over the past year and a half. Since July 2019, the dominance rate has fluctuated in the range of 63-71%.

Recent halving: Bitcoin halving is cutting the number of new coins miners create and earn by half. This happens about every four years and … More bitcoin probably played an important role in the growth of the rate and level of dominance of bitcoin. If this trend continues, the altcoin market may face a shake-up in the second half of the year.

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