High open interest signals more leverage, which could induce another flush-out if positions are liquidated.
Open interest on Bitcoin derivatives has reached a record high as BTC came close to breaching the $70,000 price point on Oct. 21.
In a post on X on Oct. 21, CoinGlass reported that Open Interest (OI) on Bitcoin futures contracts had reached a record high of $40.5 billion.
Open interest is the value or number of outstanding futures contracts that have yet to expire. It measures the amount of money invested in Bitcoin derivatives at any given time, with higher OI indicating potentially more leverage and volatility in the system.
