Return of Bitcoin leverage signals impending market volatility

quick take

  • In the last 24 hours, Bitcoin has seen a spectacular surge, breaking through the $28,000 level and pushing Bitcoin’s market capitalization dominance past the 50% threshold.
  • Spot buying has returned and over $150 million worth of Bitcoin has been withdrawn from exchanges, as you can see below.
  • according to coin glassopen interest also rose significantly.
  • “Open Interest” means a contract that has been traded but has not yet been liquidated by a set-off transaction or related exercise or transfer. It provides an indicator of the liquidity and activity of a particular market.
  • The amount of bitcoin in the open interest contract has reached a substantial amount 475,000 unitsa peak not observed since March.
  • Open interest now accounts for more than 2.2% of Bitcoin market cap, nearing its all-time high.
  • This suggests an increase in futures contracts, potentially suggesting an increase in volatility and trading volume.
NetFlow: (source: Glassnode)
OI/MC: (Source: Glassnode)
OI/MC: (Source: Glassnode)

An imminent sign of market volatility after the resurgence of Bitcoin leverage first appeared on CryptoSlate.

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