Researchers from Arkham Intelligence conducted an analysis of the cryptocurrency market over the past 24 hours and shared their findings on Twitter. According to their data, during this period, $840 million was added to the open interest (OI) in BTC.
According to experts, the first day of trading in 2024 started successfully. Over the past day, there have been liquidations of short positions with Bitcoins totaling $73.3 million. This happened amidst a sharp rise in the price of the flagship cryptocurrency BTC, which exceeded $45,000, reaching a maximum not seen since April 2022.
In addition, Arkham Intelligence analysts noted that the prices of tokens of the BRC-20 standard, ORDI and SATS, also increased by 14.2% and 9.4% respectively over the past 24 hours. Open interest in one of these cryptocurrencies significantly increased, rising by more than 50% in a day, from $304 million to $478 million.
Open Interest in relation to Bitcoin is an indicator of the number of open long and short positions in the futures and options market. This indicator reflects the total volume of all contracts that traders have not yet closed by selling or buying back contracts.
Open interest can also serve as an indicator of market liquidity. The higher this indicator, the more funds are circulating in the market, making it easier to buy and sell BTC without significant impact on the price. It is important to note that open interest does not predict the future direction of price movement. It simply reflects the activity of traders in the market.
