Darkfost
Derivatives driven Pump !
We’re currently witnessing the largest 24h Open Interest increase in quite some time. Historically, pumps driven by derivatives tend to lack sustainability. The most significant OI increases during the observed period were around 16% and 15%, which occurred during a strong bullish phase back in November/December 2024. At the time, the positive momentum in the spot market was reinforced by aggressive activity on the derivatives side. However, when comparing the price impact, it's worth noting that this time, price has only moved 4.2%. In contrast, similar past events led to moves of 10% and 7% respectively. This discrepancy suggests that selling pressure remains fairly strong.