The number of open bitcoin futures in the market is rising sharply. Last week there was talk of $ 4 billion in open interest. In the meantime, the volume has exceeded the five billion dollar limit, reports The Block.
“Open interest” is a technical term that refers to the total number of outstanding derivative contracts that have not been settled. In short: there are more contracts ready than ever before that have yet to be concluded.
It is a clear signal that more capital is entering the cryptomarket. Traders also anticipate – via futures – on a market whose price fluctuations are increasing. A future is then a hedge against a sharp fall in the price.
If we look at the market capitalization of the entire cryptomarket, the upward trend is clearly visible. Since last Wednesday, the market is worth more than $ 300 billion. Bitcoin has a dominance of 61.3% according to market researcher Coinmarketcap.