Recent analysis shows that open interest in Bitcoin futures on Bybit has reached record levels, raising questions among analysts amid the current price decline of the cryptocurrency.
Unusual Open Interest Dynamics
According to Alphractal's report, open interest in Bitcoin futures on Bybit surged by $1.52 billion in the past 24 hours, marking a new record. This increase comes amid a decline in Bitcoin's price, which poses a contradiction to typical market behavior.
Analyst Warnings
Analysts point out that normally, open interest rises alongside prices, but this time the scenario is different. This may indicate aggressive shorting or speculative trading behavior on the platform.
Possible Market Consequences
Historically, such divergence between open interest and price has preceded sharp market moves, including position liquidations and short squeezes. Alphractal's analysis warns that accumulating positions in one direction without price support can pose risks of sudden volatility.
The current situation in the Bitcoin market, according to analysts, requires careful attention. A lack of price support amid position accumulation could lead to sharp movements. Whether bulls or bears will emerge victorious remains to be seen.
