Yahya 
Based to crypto research site CoinGlass, Bitcoin may have more negative ahead as open interest (OI) in Bitcoin futures keeps rising against dropping prices. In an Aug. 16 article on X, CoinGlass pointed out that with declining Bitcoin prices, the ongoing rise in OI is “a bit unusual” and implies the market may still have space to drop.
Aug. 16 saw total OI on Bitcoin futures hit $29 billion, following its upward trend all week even as spot Bitcoin prices declined 5% over the last three days. Open interest in Bitcoin futures is the total count of unsettled or unexpired contracts. Generally speaking, an increase in OI implies a change in both long and short holdings, therefore increasing market leverage. This may cause more pronounced changes in both directions of pricing.
This situation is reminiscent of what occurred on Aug. 5, when a lot of leverage was flushed out and the price of Bitcoin dropped 20% within a day. Furthermore noted by CoinGlass were negative financing rates, which meant the futures contracts traded below Bitcoin’s spot price. Usually, this circumstance discourages traders from keeping long positions as they have to pay to keep them; short positions appeal more.
With around 24,000 Bitcoin contracts worth $1.4 billion expiring on Aug. 16, the week also marks a crypto options expiration event. Deribit reports. On spot markets, however, these kinds of events usually have little effect; rather, when they finally unwind, more important influence comes from bigger leverage build-up.
Bitcoin’s price dropped 3% during the last 12 hours as of early trade on Friday, Aug. 16; it is just barely over the $58,000 mark.
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