Yonsei_dent2024-02-09

"Open Interest reaches its highest level since 2023"

BTC has shown a surprising rally, rising by about 12% over the course of 4 days. Consequently, both Open Interest 🟠 and Funding Rate 🟢 are increasing, with Open Interest reaching its highest level since January 2023. While Open Interest alone might suggest a short-term overheated level, the Funding Rate, while positive, does not indicate significant overheating. This indicates that the ratio between long and short-position investors is not abnormally skewed, resembling the steady rally seen in October-November 2023. However, it's worth noting that if the Funding Rate rises significantly, such as reaching 0.05 as it did on January 2nd, a long squeeze could occur. 📌The steady increase in Open Interest and the state of a positive Funding Rate resemble the early stages of the bull market that emerged after the COVID shock in 2020. This indicates that investor interest in BTC continues to grow, which is undoubtedly a constructive signal from a medium to long-term perspective.