Summary
- Bitcoin selling pressure was accompanied by a sharp rise in futures market open interest, indicating an increase in leverage.
- Open interest increased by about $1 billion as Bitcoin fell during U.S. trading hours, and then rose by nearly another $500 million afterward.
- Funding rates turned higher again, suggesting that investors in long positions are starting to re-enter the market.
Forecast Trend Report by Period
Bitcoin selling pressure persisted as open interest in the cryptocurrency futures market surged, indicating an increase in leverage. Funding rates also turned higher again, signaling that long-position traders are re-entering the market.
Glassnode said on Nov. 6 that open interest rose by about $1 billion during U.S. trading hours as Bitcoin prices fell.
Later the same day, open interest increased by nearly another $500 million during U.S. trading hours.
Funding rates briefly edged lower before resuming their rise. Glassnode said that points to long-position investors returning to the market.
JH Kim
