Open Interest in Crypto: A Hidden Key to Market Sentiment
Understanding open interest in crypto is crucial for traders and analysts to gauge market sentiment. It reveals how much borrowed money is sitting in the market, indicating whether a move is being supported or is speculative. Open interest is calculated by adding up all active futures trades and positions.
According to CoinGlass, Bitcoin futures open interest peaked at $90 billion in early October 2025 when BTC traded near $126,000. By May 31, 2026, it had dropped to about $42.6 billion, showing how quickly risk can leave the market.
Rising open interest with a rising price trend indicates a trend backed by fresh money. However, high open interest together with high funding is a warning of a crowded trade. Using open interest data in conjunction with other tools provides a more comprehensive view of the market.