Bitcoin Open Interest Rises by $2.3 Billion
The increase follows Bitcoin moving above $86,000, as traders position for the U.S. jobs report. Higher funding rates point to more long activity in futures and perpetuals.
Key Takeaways
- Open interest in Bitcoin derivatives rose from 626,000 to 653,000 BTC, equal to about $2.3 billion in extra exposure.
- Bitcoin's price climbed in the same period from around $83,500 to about $86,500, while the funding rate rose from 3% to 10%.
- The increase points to more bullish activity ahead of the U.S. jobs report, with possibly more leverage in the market.
Bitcoin derivatives are drawing more attention again now that the price has moved above $86,000 (€76,100) ahead of Friday's U.S. jobs report. At the same time, open interest and funding rates have climbed, pointing to more activity in the futures and perpetual contracts market.
Open Interest Rises Quickly
According to CoinGlass, open interest rose from about 626,000 BTC on September 30 to around 653,000 BTC. That works out to an increase of 27,000 BTC, or about $2.3 billion (€2 billion), in just a few days. Open interest shows how many futures and perpetual positions are still open. It does not directly say whether traders are betting on higher or lower prices, but an increase does mean more exposure is being built.
The Bitcoin price moved in the same period from around $83,500 (€73,900) to about $86,500 (€76,600). That rise happened alongside higher open interest, which suggests new positions are supporting the move. On October 2, Bitcoin was around $86,175 (€76,300), according to the latest market data.
Funding Points to More Longs
The perpetual funding rate has also moved clearly higher, from about 3% to 10%. Funding is the periodic payment between long and short positions that keeps perpetual futures close to the spot price. When funding is positive, traders with long positions pay traders who are short.
The higher funding shows there is more demand for bullish exposure. Traders seem willing to pay more to keep their positions open ahead of the jobs report. At the same time, this rebound is coming off a low base: at the end of September, open interest was still around 625,000 BTC, almost the lowest level in 12 months.
Relevant for European Crypto Traders
For European crypto traders, this is especially relevant because Bitcoin is often the first to react to shifts in derivatives positioning. Higher funding and rising open interest can point to more leverage in the market, which often makes moves around major macro data sharper. That is especially true now that attention is turning to a U.S. data release that is closely watched well beyond the U.S.
Earlier this week, slowing demand at the start of October had already pointed to a more fragile market, after spot ETF inflows stalled and a large sell wall formed around $85,000 (€75,200)-$85,500 (€75,700).
Crypto stocks also moved higher in U.S. premarket trading. Strategy and Strive were each up about 3%, while Coinbase and Robinhood gained around 2%.
