Analysis: Bitcoin open interest remains stable and funding rate is positive, the market still tends to be bullish

According to Coinglass data, Bitcoin contract open interest fell by about 18% from $37 billion to $30.2 billion in a month, during which the BTC spot market price fell by 14%. However, Bitcoin open interest has remained stable above the 500,000 BTC mark for the past four weeks. At the same time, the perpetual contract funding rate charged by exchanges every 8 hours has been positive, indicating that the market is inclined to bullish bets. These indicators show that some traders have been establishing new long positions, offsetting other market participants from closing bullish bets. Laurent Kssis, a cryptocurrency ETF expert at CEC Capital, said that this shows that traders are still going long without hesitation, "This assumption is indeed correct. In addition, as the market is still very uncertain, traders are implementing more protection strategies. The recent liquidity shortage was enough to push the market below $60,000, and traders still tend to establish long positions, but hedging accounts for a considerable part of the transaction." Activity in the spot and options markets also showed an upward bias. According to Griffin Ardern, head of options trading and research at crypto finance platform BloFin, Bitfinex has been a source of bullish pressure during price declines, “Bitfinex whales have been buying since late June, but I have not observed similar signals in other derivatives markets.” Bitfinex’s margin long trades, which involve using borrowed money to buy assets in the spot market, have been steadily increasing since June. (CoinDesk)