Bitcoin Open Interest Reaches Dangerously High Values, Leverage Flush Coming?

Bitcoin Open Interest Reaches Dangerously High Values, Leverage Flush Coming?


On-chain data shows Bitcoin open interest has reached dangerously high values, a sign that a leverage flush may be coming soon.

Bitcoin Open Interest Rises To High Values

As pointed out by an analyst in a CryptoQuant post, the BTC open interest has now reached values where mass liquidations have taken place in the past.

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The “open interest” is an indicator that measures the total amount of BTC futures positions currently open on derivatives exchanges. The metric accounts for both long and short positions.

When the value of the metric is low, it means investors aren’t using much leverage right now. Such values usually result in low volatility in the price of Bitcoin.

On the other hand, high values of the indicator suggest that futures

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