• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
Bitcoin

Bitcoin Open Interest Has Cooled Off, Good Sign For Bulls?

Keshav Verma
by Keshav Verma
1 year ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes.

Bitcoin Open Interest Has Cooled Down From Recent Overheated Levels

As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Open Interest has registered a retrace recently. The “Open Interest” here refers to a measure of the total amount of BTC-related derivative contracts currently open on all exchanges.

When the value of this metric rises, it means that the investors are opening new positions on the derivative market right now. Generally, the total leverage in the market goes up when new contracts crop up, so an increase in the Open Interest could lead to higher volatility for the asset.

Related Reading: Litecoin Belief: 62.5% Of All LTC Investors Are HODLers

On the other hand, a decline in the indicator implies the derivative users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Either way, the market could act in a more stable manner after such a decrease, due to the lower leverage.

Now, here is a chart that shows the trend in the Bitcoin Open Interest since the start of the year:

Bitcoin Open Interest

The value of the metric appears to have taken a significant hit recently | Source: CryptoQuant

As displayed in the above graph, the Bitcoin Open Interest had risen alongside the price as the rally fueled by the spot exchange-traded funds (ETFs) had occurred.

In this surge, the indicator had achieved a new all-time high above $18 billion as the cryptocurrency’s value itself had marched to a new record. Historically, though, extreme levels of Open Interest have been a sign of the market being overheated, so the asset was in a delicate situation at these ATH levels.

What followed the heated market was a notable drawdown in the coin’s value, alongside which the Open Interest had also seen a significant cool off. Since then, as BTC has ranged, so has the metric.

The indicator has been jumping back and forth between overheating and cooling down, and with the recent drawdown in the price, its value dropped to a low under $14 billion.

Generally, when the Open Interest is overheated, the asset could become more probable to see volatility. This sharp price action that may emerge could, in theory, take the coin in either direction, but the recent trend has been that the Open Interest has only cooled off with a decline in the price.

Related Reading: Bitcoin Exchange Deposits Stay Low: Whales Disinterested In Selling?

The indicator dropping back to lower levels, however, has been conductive for price increases. In the latest drawdown, the Open Interest briefly hit the lowest levels since the start of March.

What has followed this derivative market cooldown has been the rebound in the cryptocurrency’s price. If Open Interest now doesn’t overheat again, the chances of this rebound lasting could be optimistic.

BTC Price

Bitcoin has been making recovery from its plunge during the weekend as its price has climbed back up to $66,300 so far.

Bitcoin Price Chart

Looks like BTC has been going up over the past 24 hours | Source: BTCUSD on TradingView
Featured image from Yiğit Ali Atasoy on Unsplash.com, CryptoQuant.com, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Keshav Verma

Keshav Verma

Follow

Keshav is a Physics graduate who has been employed as a writer with Bitcoinist since June 2021. He is passionate about writing and through the years, he has gained experience working in a variety of niches. Keshav holds an active interest in the cryptocurrency market, with on-chain analysis being an area he particularly likes to research and write about.

Full Profile

Related Posts

Bitcoin Spot Demand Surges As Coinbase Premium Signals Strength – Details

Bitcoin Spot Demand Surges As Coinbase Premium Signals Strength – Details

35 minutes ago
Bitcoin news

Euro’s Death Spiral Makes Bitcoin The New Reserve: Arthur Hayes

2 hours ago
Metaplanet Bitcoin

Japan’s Metaplanet Becomes 4th Largest Bitcoin Treasury After $615M Buy

11 hours ago
Bitcoin news Michael Saylor

Saylor Unveils His Bitcoin Endgame That Could Upend Global Finance

19 hours ago
Bitcoin Spot Liquidity Shrinks: Stablecoin NetFlows Turn Negative Despite ETF Inflows

Bitcoin Spot Liquidity Shrinks: Stablecoin NetFlows Turn Negative Despite ETF Inflows

23 hours ago
Bitcoin

Bitcoin Beyond Money: It Is A Remarkable Achievement In Cryptography – Here’s Why

1 day ago

Premium Sponsors

Press Releases

  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    10 hours ago
  • Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As One of 2025’s Best New Crypto.

    Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As...

    15 hours ago
  • най-добрите криптовалути

    Най-добрите криптовалути за...

    1 day ago
  • As the Tapzi Fundraiser Continues to Generate Buzz, Could It Be One of This Year’s Best Crypto Presales?

    As the Tapzi Fundraiser Continues to Generate Buzz, Could...

    2 days ago
  • 距離上線僅剩3周:Snorter代幣ICO融資突破 415...

    3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.