Definition ∞ Open interest all time high signifies that the total number of outstanding derivative contracts, such as futures or options, has reached its highest recorded level. This metric indicates a significant amount of capital committed to a particular asset’s derivatives market. A new all-time high in open interest often suggests increased market participation and speculative activity.
Context ∞ In cryptocurrency markets, an open interest all time high for Bitcoin or Ethereum futures can precede periods of heightened volatility. It suggests a large accumulation of leveraged positions, which could lead to substantial liquidations if prices move sharply. Crypto news frequently analyzes this metric to gauge market sentiment and anticipate potential price swings.
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