Futures Interest

Definition ∞ Futures interest refers to the speculative interest or demand for futures contracts, which are agreements to buy or sell an asset at a predetermined price on a future date. High futures interest suggests active trading and strong conviction about the future price direction of the underlying asset. This metric is vital for assessing market sentiment and potential price movements.
Context ∞ The level of futures interest in major cryptocurrencies like Bitcoin and Ethereum is a key indicator closely watched by traders and analysts. Elevated interest rates in futures markets can signal increasing bullish or bearish sentiment, depending on whether open interest is rising in long or short positions. Monitoring these dynamics is crucial for understanding the speculative pressures influencing spot market prices.