A large number of open futures positions signal renewed price turbulence for bitcoin ahead.
Pedestrians moving in a busy street
"Futures markets remain a powder keg for short-term volatility with Perpetual Futures Open Interest at ~250,000 BTC- a historically elevated level," blockchain analytics firm Glassnode said in a research noteAn above-250,000 BTC open interest has coincided with volatility spikes in the past."Since April 2021, this has paired with large pivots in price action as the risk for a short or long squeeze increases, resolved in market wide deleveraging events," Glassnode added.
Abnormally high open interest indicates excess leverage – funds borrowed to amplify returns from the trade. In such situations, the market becomes vulnerable to liquidations and resulting price turbulence. Liquidations refer to the forced closure of long or short positions by exchanges due to margin shortage. These lead to exaggerated price moves, as seen several times over the past 12 months.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Going Under $30,200 May Provoke Further Drop to $20,000: VanEck’s Gabor GurbacsLeading crypto expert of VanEck fund believes that $30,200 is a critical point for further Bitcoin’s price action
Read more »
Russia May Allow Crypto Mining and Gold-Backed Stablecoins, Lawmaker Says – Regulation Bitcoin NewsRussia can legalize crypto mining and stablecoins backed by gold under government control, a member of the Russian parliament has suggested.
Read more »
Intel may be working on specialized chip for mining Bitcoin | Digital TrendsIt appears that Intel may be venturing into cryptocurrency mining hardware. A new rumor shows that Intel may be working on a Bonanza Mine Bitcoin mining chip.
Read more »
Would Trump Throw His Own Kids Under the Bus to Save Himself? We May Soon Find Out.The Supreme Court, the Jan. 6 committee, New York’s attorney general, and a raft of lawsuits must have Trump feeling like the walls are closing in.
Read more »