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▲ Bitcoin (BTC)/ChatGPT Generated Image
With the surge in fund inflows into the futures market coinciding with the rise in Bitcoin (BTC) price, a diagnosis has been made that market volatility could expand again.
According to NewsBTC on May 20 (local time), crypto analytics firm Santiment recently analyzed the latest trends in Bitcoin open interest. Open interest is a metric that measures the total sum of futures market positions opened on centralized exchanges, and an increase in the figure means that investors are opening new positions in the market. Generally, as new positions increase, the total amount of leverage grows, tending to amplify price volatility. Conversely, when the indicator decreases, leverage is resolved through liquidations or voluntary position closures, and the market stabilizes.
In early February, when Bitcoin's price plummeted at the beginning of this year, the monthly change in open interest fell into negative territory. This was the result of sharp price fluctuations triggering large-scale liquidations. The negative trend continued throughout February, but in March, the figure turned slightly positive, and the market began to stabilize. This improving trend continued into April, with a significant amount of funds flowing into the derivatives market.
Particularly in May, the change in open interest as of the 30th surged to an unprecedented level. Santiment analyzed that as Bitcoin rallied towards $80,000, perpetual futures open interest grew at the fastest pace since 2026. This contrasts with January, when a Bitcoin recovery phase also occurred, but at that time, speculative interest was not as concentrated as it is now.
Looking at the inflows by exchange, it was confirmed that the largest amount of funds was concentrated on Binance, the world's largest exchange. Currently, Binance holds the largest open interest among all global platforms, followed by Bybit, Gate.io, OKX, and HTX.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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