Investors See Opportunity With Current Bitcoin Price – Bitcoin Magazine

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This is an opinion editorial by Mike Ermolaev, head of public relations at the ChangeNOW exchange.

As a retail trader or someone who just got started with bitcoin not long ago, you may be searching for clues about what to expect next with its price. A second opinion is also important for seasoned bitcoin investors to compare their own perspectives.

Analyzing Open Interest Of Bitcoin Futures

Bitcoin open interest provides insight into how much money is flowing into and out of the bitcoin derivatives market. Derivatives like bitcoin futures and perpetual swaps are used by traders to speculate on whether bitcoin’s price will rise or fall without having to own the digital asset. A higher bitcoin open interest means more traders have opened positions, while a lower one means more traders have closed them.

As of writing, bitcoin-denominated open interest had increased to 592,000 BTC from 350,000 BTC at the start of April 2022. A look at the bitcoin denomination can help isolate periods of increased leverage from price fluctuations.



Source link Bitcoin Magazine

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