BTC Open Interest Climbs, Funding Rate Slows
BTC perps open interest (OI) has started to recover following the mass liquidations we saw in late November and early December. In USD terms, BTC perps OI remains ~28% below its November high while BTC is down ~30% from its recent price peak. (However, if measured in BTC terms, perp OI is back to prior highs as the recent pickup in OI has coincided with further price weakness for BTC.)
While crypto markets remain extremely fearful, it seems bearish sentiment the past month has somewhat dissipated among some traders. However, short-term technicals don’t look pretty at current levels.
Funding rates have remained relatively low but are still positive as traders opened more longs than shorts. Still, this alone doesn’t give a strong indication of where the market is heading in the short run.