SignalQuant
BTC's open interest is currently very high
Open interest can be a powerful rally driver, but it can also be a clear indicator of overheating. In that sense, open interest has been a strong driver of BTC's price in '23 and '24, but it's now at a level that may be too high. FYI, open interest has only been higher than the current level twice before, once in '21 and once in '22. Should we consider the current high open interest to be 1) a precursor to a significant correction, as has been the case in the past, or 2) be considered a sign of the age of BTC spot ETFs?