Bitcoin perpetual open interest rises as traders bet on year-end rally

Crypto derivatives markets are showing increased activity, with Bitcoin perpetual open interest rising from 304,000 to 310,000 BTC following a brief touch of $90,000. The funding rate also increased from 0.04% to 0.09%, which Glassnode interprets as a renewed buildup in leveraged long positioning as traders anticipate a year-end market move. An increased funding rate generally suggests bullishness, where traders pay premiums to hold long positions, though extremely high rates can signal overheating and correction risk. Market volatility may also be amplified by a massive $23 billion Bitcoin options expiry scheduled for Friday, December 26. The put/call ratio is low at 0.37, indicating more long contracts than shorts expiring, with 'max pain' set at $96,000, suggesting bullish bets are concentrated at higher strike prices.

(Source：Cointelegraph)