According to CoinGlass, the total value of active Bitcoin futures contracts, known as notional open interest, has reached a 26-month high.
As of now, the combined value of perpetuals and standard futures is over $21 billion, with Bitcoin trading at $49,570 in the spot market.
This represents a 22% increase in open interest this year, nearing the all-time high of $24 billion in mid-November 2021 when Bitcoin was trading above $65,000. This surge in open interest, along with a recent price rise of 28%, suggests an influx of new bullish money and confirms the uptrend.
However, leveraged products such as futures can also lead to increased volatility, as they magnify both profits and losses.
While this rise in open interest may seem concerning, the overall leverage in the market remains low, reducing the likelihood of sudden liquidation of long positions and a resulting price crash.
