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Decline in Bitcoin Open Position Contracts amidst Rising Prices

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Decline in Bitcoin Open Position Contracts amidst Rising Prices

According to reports, according to data disclosed by blockchain analysis company Glassnode, Bitcoin open position contracts peaked in October 2022, when approximately 667000 BTCs were allocated to open position contracts. However, currently, approximately 368000 Bitcoins are allocated to Bitcoin open position contracts, which means that approximately 300000 BTCs have been reduced since October 2022. In addition, in the past two weeks, the price of Bitcoin has risen from $19000 to $26000, with open positions falling by about 15% during the period, similar to the level at the beginning of 2022, indicating that spot Bitcoin is accumulating, which is also a relatively healthy state.

Data: Since the peak in October 2022, about 300000 BTCs in Bitcoin open positions have been closed

Analysis based on this information:


The message highlights the decline in Bitcoin open position contracts and the increase in spot Bitcoin accumulation. According to blockchain analysis company Glassnode, the peak of Bitcoin open position contracts was observed in October 2022, with around 667,000 BTCs allocated to open position contracts. However, currently, only about 368,000 Bitcoins are allocated, indicating a reduction of around 300,000 BTCs since October 2022.

This decline in open position contracts can be attributed to several factors. Firstly, it could be a result of decreased confidence in Bitcoin’s future price direction, prompting traders to close their positions. Secondly, it could also indicate that traders are moving towards spot Bitcoin accumulation rather than derivatives trading, which is a relatively healthier way of accumulating Bitcoin.

Interestingly, despite the decline in open position contracts, the price of Bitcoin has been rising. In the past two weeks, the price of Bitcoin has gone up from $19,000 to $26,000, with open positions falling by approximately 15% during the period. However, the levels are similar to the beginning of 2022, indicating that the rising prices have not yet caused any significant change in traders’ positions.

In conclusion, the decline in Bitcoin open position contracts, combined with the rising prices, suggests that traders might be moving away from derivatives trading and towards spot accumulation. This shift towards spot accumulation is expected to be a healthier way of accumulating Bitcoin, as it reduces the risks associated with leveraged trading. Additionally, open position contracts could be an accurate barometer of traders’ sentiment towards Bitcoin, indicating its future price direction. Therefore, it is essential to monitor open position contracts closely to get a better understanding of Bitcoin’s evolving market dynamics.

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