March 29, 2024

Investor interest in BTC futures increased by 70%

Investor interest in BTC futures increased by 70%

Open interest in bitcoin futures has nearly doubled over the past few weeks, jumping fromLevelsbelow 6 thousand to almost 10 thousand contracts. As a result, the number of contracts reached a record high.

Technical analyst and trader Tom McClellan, who has more than 36,000 Twitter followers, has noticed this trend.

Open interest is the total number of open Bitcoin futures contracts or positions that have not been closed by a buyer or seller.

Open interest is not a reliable indicatorthe future dynamics of the Bitcoin exchange rate (BTC), but gives some idea of ​​activity in the market as a whole. When open interest is at a very low level, this indicates a low market activity, and vice versa.

BTC Dominance Level

Bitcoin's dominance level has begun to slow as it completes its fourth straight week of gains. If this trend continues, the situation in the altcoin market may worsen.

Level of dominance that measures sizeBitcoin's total market capitalization shows good momentum in the second quarter. After rising to 70% in January, a month later the indicator fell to 62%.

The indicator reached a maximum of 69% on May 8, when the price touched a local maximum at around $ 10,000, after which it partially corrected.

At the time of writing, the level of bitcoin dominance has recovered to 68.2%.

The indicator has become less volatile over the past year and a half. Since July 2019, the level of dominance has fluctuated in the range of 63-71%.

The recent Bitcoin halving likely played a rolean important role in the growth of the rate and level of dominance of Bitcoin. If this trend continues, the altcoin market could see a shake-up in the second half of the year.

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