Analyst: Rising Bitcoin futures open interest signals a return of risk appetite
Jinse Finance reported that analysts pointed out that Bitcoin futures open interest (OI)—an important indicator measuring participation in the derivatives market—has increased by nearly 13% since the beginning of this year, which may reflect a resurgence in market risk appetite for crypto assets. CryptoQuant analyst "Darkfost" stated on Monday that over the past three months, Bitcoin futures OI has dropped from 381,000 BTC to 314,000 BTC, a cumulative decline of 17.5%. This change occurred after Bitcoin's price retraced by about 36% since early October, "reflecting the market entering a de-risking phase and the concentrated closing of leveraged positions." However, Darkfost believes that Bitcoin futures OI may be in the early stages of recovery. According to Coinglass data, OI has rebounded from $54 billion (an 8-month low) on January 1 to over $61 billion on January 19. In addition, OI also reached an 8-week high of $66 billion on January 15. The analyst stated: "Currently, open interest is showing signs of gradual recovery, indicating that market risk appetite is slowly returning."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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