The staggering number compared with previous months is the result of an explosion in open interest in Bitcoin options. Open interest refers to contracts to buy or sell Bitcoin at fixed prices on future dates.
The number of open contracts reached record levels in recent months, as investors bet on the future rise or fall of the cryptocurrency. Over the past month, this number has grown to an all-time high of contracts set to expire.
The impact on how the price will be affected is anyone’s guess, however. Recent spikes in open interest have had little effect on the market. Closure of contracts has also not caused substantial price variations.
In fact, Bitcoin’s endurance above $9,000 has provided a stable support level for Futures contracts are literally agreements to buy or sell an asset on a future date and for a fixed price…. More holders to bet against.
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This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions. The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.