Bitcoin Open Interest Climbs Up, Price To Break Sideways Trend Soon?

On-chain data shows the Bitcoin open interest has been slowly growing recently, something that could lead to more volatility in the price of the crypto. Bitcoin Open Interest Goes Up While Funding Rates Approach A Neutral Value As pointed out by an analyst in a CryptoQuant post, the BTC open interest has gained around $500 million over the last few days. The “open interest” is an indicator that measures the total amount of BTCUSD positions currently open on all derivatives exchanges. The metric takes into account for both short and long positions. When the value of this indicator goes up, it means investors are opening up more positions on exchanges right now. Since this usually leads to a higher amount of leverage in the market, this kind of trend can make the price of Bitcoin more volatile. Related Reading: Bitcoin (BTC) Must Make It Past This Threshold To Bounce Back On the other hand, the decline in the metric implies positions are closing up or liquidating on exchanges at the moment. Lower leverage usually leads to a more stable value of the crypto, and so such a trend can result in lesser volatility for BTC. Now, here is a chart that shows the trend in the Bitcoin open interest over the last few days: The value of the metric seems to have climbed up in recent days | Source: CryptoQuant As you can see in the above graph, the Bitcoin open interest has observed an uplift during the past couple of days. This...