The market found strength on the Asia open today, but the European and North American sessions saw sellers take control and push almost everything lower. BTC fell by nearly 2% as the North American session opened today. It was a buzzing weekend though; coins like SOL, YGG, and LUNA hit fresh all-time highs, and DeFi tokens enjoying a bounce too.
Open Interest Tracks Price, Leverage Proxy
A pattern you see with crypto markets that differs from other markets is how open interest tracks price. For the most part, this is because the vast majority of BTC open interest accounts for traders who are trying to increase their long exposure and delta-neutral players taking advantage of basis/funding.
While not perfect, we can use open interest as a rough proxy for the amount of leverage in the market. During this rally we’re seeing a welcome development — price is moving at a faster pace than open interest, implying some degree of doubt from fut