Open interest in bitcoin (BTC) has surged to $10 billion, a five-month high, according to data from Coinalyze. A rise in open interest alongside an increase in price is often used to confirm the legitimacy of a move. Bitcoin was trading at around $30,000 after it surged to a 10-month high of $30,540 on Tuesday. Futures open interest has been moving up vertically, showing more participation from crypto traders and a bullish market sentiment, according to Woorton. However, an increase in open interest means that whilst short-sellers have added to their shorts in this region, traders betting on long trades are doing so with leverage that may unwind if price begins to reverse. A total of $98 million in crypto derivatives positions have been liquidated in the past 24 hours as bitcoin momentarily slipped below $30,000.

(By Oliver Knight)