Bitcoin Futures Open Interest (OI) has reached record levels on cryptographic derivative grants while traders provide that cryptocurrency will continue and reach new heights of all time.
Bitcoin (BTC) Futures Open Interest reached a summit of just over $ 80 billion on May 23, according to Coinglass. This is an increase of 30% since the beginning of May, because derivative speculators are responsible for leverage in anticipation of higher prices of Bitcoin.
Open interest is the total number of current contracts which allow traders to bet on the future price of Bitcoin, which have not been settled or closed, showing the total amount of speculation of the current market.
When OI increases, it indicates that massive leverage positions are built on the market, with many traders occupying large positions with borrowed money.
If the Bitcoin price moves compared to these over-launched positions, traders are liquidated by force and the flushout can create sales pressure on Bitcoin, which can cause a rapid drop in prices and high volatility.
However, analysts suggest that Bitcoin (ETF) Bitcoin (ETF), which have experienced more than $ 2.5 billion this week, can counter part of this extended lever effect.
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The Bitcoin options markets show a similar model with open interest greater than $ 1.5 billion at $ 110,000 and $ 120,000 for deribit prices. There are also more than a billion dollars in OI at exercise prices of $ 115,000, $ 125,000 and $ 130,000.
About $ 2.76 billion in theoretical value contracts should expire on May 23 with a 1.2%put / call ratio, which means that there are more sellers (Put) than long (call), and a maximum point of pain of $ 103,000, where most losses will be made at the expiration, according to Deribit.
Bitcoin slides below $ 111,000
Meanwhile, Bitcoin has slightly lost its recent earnings and briefly slipped below $ 111,000 in Coinbase, according to TradingView.
The asset has now won almost 20% since the start of the year and almost 50% since his accident at $ 75,000 on April 7 after the announcement by US President Donald Trump of world prices.
Bitcoin reached a summit of $ 112,000 on May 22 and was mainly exchanged just above $ 111,000 in the past 24 hours, but had once again slipped below the level at 4:15 am UTC on May 23.
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