The dollar-value locked-in open futures and perpetual futures contracts for Bitcoin (
According to CoinGlass, the notional open interest, which refers to the dollar value locked in the number of open or active Bitcoin (
The renewed interest in leveraged products like futures, coupled with a price rise, confirms the uptrend and represents an influx of new money on the bullish side. Bitcoin (
However, leverage magnifies both profits and losses, so a notable rise in futures open interest is often seen as a warning of price volatility. The overall leverage in the market is still low, indicating a low probability of sudden long (buy positions) liquidations leading to a price crash. Liquidation refers to the forced closure of bullish long or bearish short positions by exchanges due to a margin shortage, and mass liquidations are known to inject bullish/bearish volatility into the market.
Bitcoin's (
Noelle Acheson, the author of the popular Crypto is Macro Now newsletter, confidently stated in Tuesday's edition, "The leverage build-up is still relatively low, judging by the
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