maartunn
Open Interest increased with 8,6%, highest increase in 3 months đ
Yesterday's price action was the result of a big increase in Open Interest. The total amount of Open Interest jumped with $700m, which is an increase of 8,6%. The increase in Open Interest means that traders are opening long/short positions of derivative contracts. By doing that, they are speculation on the price movement of Bitcoin. The increase in Open Interest is remarkable because the move from the bottom ($16k) to today's price ($23,7k) was heavily driven by short liquidations. This can be seen in the graph by the increase of Open Interest (red spike) on 12 Jan, followed by a decrease of Open Interest (the big green candle on 13 Jan). That were shorts that were forced out of the position. Besides that, it is for the first time in multiple weeks that Open Interest has increased by a lot. And that will probably lead to high volatility in the upcoming period.