Bitcoin derivatives continued to grow on October 21, with open interest reaching an all-time high as the price of BTC came close to breaching the $70,000 barrier.
According to CoinGlass, open interest in Bitcoin futures contracts has reached 40.5 billion today, the highest in its history.
Open interest is a measure of the value or number of futures contracts that are currently active and have not yet expired.
This indicates the amount of money invested in Bitcoin derivatives, and higher open interest suggests potentially higher leverage and volatility in the market.
At times of high open interest, sharp price movements can trigger liquidations, which can lead to significant price declines due to forced selling in the spot market.