Open Interest Rise

Definition ∞ An open interest rise signifies an increase in the total number of outstanding derivative contracts, such as futures or options, that have not yet been closed or settled. A rise in open interest indicates new money flowing into the derivatives market, suggesting increased market participation and potential for price volatility. When combined with price movements, it can confirm the strength of a trend. It reflects growing speculative activity.
Context ∞ Open interest rise is a key metric for analyzing the sentiment and positioning of traders in cryptocurrency derivatives markets. A sustained increase, especially alongside price appreciation, is often considered a bullish signal. This indicator helps market participants gauge the level of conviction behind current price trends and anticipate future market movements.