Cryptocurrency analytics firm GlassNode has released some notable data on the Bitcoin (BTC) market in its latest report. The company’s analysis shows that as investors’ risk appetite increases, the market volatility is also increasing.
According to GlassNode data, open interest in the futures market has been rising significantly recently. Since the beginning of March, Open Interest has accumulated a total of 281,000 BTC, up 15.6%. This suggests that investors are beginning to use more leverage, and price movements could be more rapid. In particular, a sudden price is more likely to liquidate investors or cause suspension orders.
Nevertheless, the average funding rate has fallen to -0.023%, indicating a predominant lack of markets. Funding rates can be defined as the interest rate paid to balance the price difference between futures contracts and spot markets. Negative funds mean that more investors are positioned for Bitcoin to fall.
According to the analyst company, this could pave the way for a short narrowing scenario where, if bullish momentum continues, these investors could be forced to close their positions.
Additionally, the report said the seven-day average premium paid for long positions has dropped to $88,000 per hour, with this trend continuing. This reveals that investors’ interest in Bitcoin’s rising positions has declined, and the general trend in the market is currently short.
*This is not investment advice.
