A rise in open interest along with a price increase is typically viewed as a confirmation of bullish momentum in the market.
Bitcoin (BTC) has gained 2% since midnight UTC, reaching $87,800. This price movement has been accompanied by a significant uptick in futures open interest on Binance, reinforcing positive sentiment and hinting at further potential upside.
Data from Coinglass and Velo Data reveals that open interest in BTC-USDT futures on Binance has expanded by approximately 7,000 BTC, amounting to $614.6 million since the start of the Asian trading session. Open interest represents the number of active futures contracts in the market.
Moreover, funding rates on Binance have remained positive, suggesting that traders continue to favor leveraged long positions.
“This substantial increase in open interest indicates that volatility is on the horizon,” Coinglass commented, pointing to the likelihood of heightened price movements in the near future.
