Data shows that with cryptocurrency prices exceeding $27000, Bitcoin holdings have surged by $1.8 billion
Data shows that with cryptocurrency prices exceeding $27000, Bitcoin holdings have surged by $1.8 billion.
Bitcoin holdings have surged in the past day
The 'Open Contracts' indicator tracks the total amount of Bitcoin futures contracts that are currently open on all derivative trading platforms.
When the value of this indicator rises, it means that investors are opening new positions in the market. Generally speaking, when this situation occurs, cryptocurrencies are more likely to exhibit volatility, as new contracts typically mean an increase in the industry's overall leverage ratio ("leverage ratio" is naturally the action that loan amount holders can choose to take regarding their positions).
On the other hand, a decrease in this indicator means that the net contract value is either liquidated or liquidated. Following this trend, assets may become more calm.
Now, this is CoinGlass's chart, showing the trend of Bitcoin open contracts from 2023 to date:
It seems that the value of this indicator has skyrocketed in the past day
The above figure shows that Bitcoin holdings have experienced a significant surge today. The main driver behind this futures boom seems to be the surge in cryptocurrency prices to levels above $27000.
Prior to this increase, the value of this indicator was $11.04 billion, but it has now reached the $12.81 billion mark, indicating an increase of up to $1.77 billion (approximately 16%).
The rapid growth of open positions will naturally lead to more volatility in assets, although it is difficult to say in which direction such volatility may occur.
If this increase is due to short positions intervening to short the asset, further increases will lead to its liquidation, further driving the price up. However, if the contract being opened is long, the outcome of the rebound may not be very good.
The chart shows that during the grayscale rebound last month, there was a similar surge in open positions, but the bulls who opened positions at that time eventually discovered liquidation as prices had returned to lower levels.
The fund rate measures the periodic fees paid by futures traders to each other, and may indicate whether the new position is short or long.
The value of this indicator seems to have been consistently green in recent days
From the graph, it can be seen that the current Bitcoin fund rate is positive, but with the increase of open positions, it has not changed much, which means that long and short positions are more evenly distributed in this increase.
It remains to be seen whether the direction of cryptocurrencies in the coming days and the surge in open positions will have any effect.
Bitcoin Price
Earlier in the day, Bitcoin soared to $27400, but has since fallen back to $27200.
BTC has skyrocketed in the past day
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