Bitcoin OI surge raises risk of large liquidations in either direction

Bitcoin futures open interest has risen to 1.36 times daily futures trading volume, nearing the highest level since September last year, while low turnover leaves the market vulnerable to rapid cascading liquidations in either direction, according to a Glassnode analysis. Glassnode said position sizes are large while trading volume remains low, meaning there may not be enough market activity to absorb liquidations quickly in either long or short positions when trading is thin.