The open interest in Bitcoin futures has almost doubled in the past two weeks, jumping from just under 6,000 open contracts to nearly 10,000. The activity represents an all-time high for Bitcoin futures since their inception.
Tom McClellan, a technical analyst and trader who boasts more than 36,000 Twitter followers, brought attention to the trend in a tweet.
Open interest represents the total number of open Bitcoin futures contracts, or positions that have not been closed by a buyer or seller.
While open interest is not a good predictor of future price changes, it does offer insight into total market activity. When open interest is very low, activity in the market is low as well. Conversely, high open interest indicates market activity—a critical issue for Bitcoin.