Analysts see risk appetite signs as Bitcoin futures OI rises 13%
Bitcoin futures open interest recovered 13% in January following the massive deleveraging event last year, suggesting a slow return of risk appetite.
Bitcoin futures open interest (OI) — a measure of derivative market participation — has gained almost 13% from the start of the year, which analysts say could reflect more risk appetite for crypto.
Bitcoin futures OI has fallen 17.5% from 381,000 BTC to 314,000 BTC over the past three months, following a roughly 36% price correction from early October, “reflecting a phase of risk reduction and the unwinding of leveraged positions,” said CryptoQuant analyst “Darkfost” on Monday.
However, Darkfost said recovery in Bitcoin futures OI could be in motion after gaining from an eight-month low of $54 billion on Jan. 1 to more than $61 billion on Jan. 19.
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