Under the surface of Bitcoin's 8xK consolidation, the continuous surge in weighted open interest is actually the result of institutional funds 'quietly entering the market'. Unlike retail investors who are swayed by short-term price fluctuations, institutional funds are better at positioning themselves during consolidation periods, and the changes in open interest are the best window to glimpse their movements.
From the perspective of market structure, institutional funds often enter the market with characteristics of large scale and long cycles, which do not trigger significant short-term price fluctuations, thus they prefer to quietly position themselves through the contract market. The current accelerated expansion of weighted open interest, especially at the high levels in mid-December, is highly consistent with the positioning behavior of institutional funds. Previous washout actions have provided institutional funds with opportunities to accumulate positions at low prices, clearing out retail chips through volatility and lowering their own entry costs. At the same time, as the year-end approaches, some institutions may adjust their Bitcoin contract positions for asset rebalancing, which also drives the growth of open interest. For ordinary investors, the entry of institutional funds means that the subsequent market trend is more sustainable, and at this time, one should closely follow institutional movements, pay attention to the changing trends of open interest, and follow the trend when a breakout occurs to seize the trend led by institutions.@男神说币 #比特币流动性 $BTC
