Bitcoin "Open Interest" Data Retreats to $14.2B, Overheated Derivatives Markets Cool Off

Bitcoin-Open-Interest-Data-Retreats-to-142B-Overheated-Derivatives-Markets-Cool-

Bitcoin "Open Interest" Data Pullbacks to $14.2B, Overheated Derivatives Markets Cool Off

For newbies:

Open Interest (OI) is a metric that tells us the number of open positions (including both long and short positions) currently on a derivatives exchange's trading pairs.

In a nutshell:

At Bitcoin's previous all-time high (ATH) of $69,000, OI was around $16 billion.

During the recent rally with Spot ETFs, interest in derivatives (leveraged) trading increased and OI surpassed $18 billion.

Many analysts (including myself) were expecting a pullback. This happened and we can say that the derivatives markets have cooled off, at least for a while.

Thanks for reading.