CoinGlass: Open interest in Bitcoin futures is almost back to record levels

The team of the information and analytical portal CoinGlass reported that against the backdrop of the rising market price of Bitcoin, open interest in BTC futures on centralized exchanges reached a new high.

As of Monday, February 19, the total open interest in Bitcoin futures came close to $23 billion, which was a new high since November 2021. The achievement of the result was facilitated by the growth of trading activity around the largest cryptocurrency by capitalization, analysts emphasize.

Open interest in an investment instrument takes into account the total number of active futures or options contracts in the financial market. In fact, this is a total indicator that reflects the total amount of funds invested in derivatives at a certain point in time.

CryptoQuant experts are warning crypto investors that the renewed interest in leveraged products such as futures, along with rising prices and an influx of liquidity into the market, should be seen not only as an opportunity to make a profit, but also to incur losses. A marked increase in open interest in futures is often a predictor of future price volatility.

CryptoQuant experts note: overall leverage remains low, which suggests a small likelihood of sudden liquidation of long positions leading to a price collapse.

On the afternoon of Tuesday, February 20, Bitcoin was trading at $52,050 – $52,260. Over the past 24 hours, BTC price has risen by 0.12%. On the weekly timeframe, the growth was about 5.8%.

The day before, a former CIA employee living in Russia since 2013 called Bitcoin the most significant achievement of the financial system since the existence of money and means of exchange.