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On-chain data shows the Bitcoin spot market hasn’t been left behind during the latest price rally as its volume has registered a large increase.
Both Bitcoin Open Interest & Spot Volume Have Shot Up
In a new post on X, the on-chain analytics firm Glassnode has discussed about the latest trend in the Bitcoin Open Interest. The “Open Interest” refers to an indicator that keeps track of the total amount of derivatives positions related to BTC that are currently open on all exchanges.
It would appear that the recent push toward recovery has led to a surge in speculative interest around the cryptocurrency, as the Open Interest has witnessed a notable increase.
“BTC Futures Open Interest rose from $36.2B on Monday to $38.6B today, a +$2.4B increase in less than 36 hours,” notes the analytics firm. This significant rise in the metric has garnered attention from the community, but something that’s being talked about less is that the other side of the market has also seen a boost in activity.
More specifically, the Trading Volume associated with the spot market has observed a sharp increase recently.
The “Trading Volume” is an indicator that measures the total amount of the cryptocurrency that’s becoming involved in trading activities on the centralized exchanges. In the current case, only the Trading Volume associated with the spot platforms is of interest.
This part of the Trading Volume has gone up from $2.9 billion to $8 billion, which suggests spot activity has almost tripled within less than 36 hours. “This shows a simultaneous influx of capital into the spot market alongside the OI spike,” says Glassnode.
Generally, rallies that are built on high speculative interest tend to be unstable, because the underlying leveraged positions can be susceptible to easy liquidation.
While the rise in the Open Interest could be bad for the current recovery run for this reason, the fact that the spot Trading Volume has also shot up at the same time could be a more optimistic sign.
Rallies require constant fuel to be sustainable, which comes in the form of an increase in the Trading Volume. Runs that fail to gather attention from the spot market tend not to last. With both the Open Interest and spot Trading Volume up right now, it remains to be seen how Bitcoin would turn out in the coming days.
BTC Price
Bitcoin has continued to add to its recovery during the past day as the asset’s price has now managed to touch the $91,000 level.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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