BTC open interest at YTD high doesn’t move prices, but traders can rely on bots

cointelegraph.com:

Bitcoin (BTC) open interest has been ascending for months, suggesting the market’s resilience even though the largest cryptocurrency by market capitalization hasn’t consolidated above the psychological level of $30,000.

At the beginning of August 2023, Coinalyze data showed that the Bitcoin open interest figure returned to break above $10 billion, maintaining close to the highest level since the beginning of May 2022. The figure updated the year-to-date high on Aug. 9.

Open interest is a metric that reflects the volume of unsettled futures, potentially indicating the confidence of the market to leave positions open. This is an important gauge, given that a good chunk of Bitcoin trading occurs on futures trading platforms, such as those offered by Binance, Bybit, OKX and the Chicago Mercantile Exchange (CME).

Futures contracts enable traders to speculate on the price of assets without their direct or physical involvement. While Bitcoin doesn’t change hands during futures trading, these financial instruments can influence market trends by providing insights into the general sentiment.

While the open interest figure has been on the rise, leaving the sour taste of the FTX collapse behind, Bitcoin futures trading volume has declined since March of this year, meaning that traders are less active than in the first quarter.

These market conditions may suggest that the accumulating open interest is coming from institutional investors.

An expanding open interest in Bitcoin generally aligns with a surge in its value. Yet the current scenario is different, as the cryptocurrency faces challenges in maintaining a position above $30,000.

Several events are hindering a fresh bullish move. Firstly, investors are not confident that the United