Why Doesn't Price Necessarily Rise When Open Interest Keeps Increasing?

In the crypto derivatives market, Open Interest (OI) is often used to gauge market participation.

When OI keeps increasing, some traders believe that more and more capital is entering the market and that a move may be about to begin.

But there is a key issue here:

An increase in open interest reflects an increase in open positions, not necessarily an advantage for buyers.

Why?

First, every open contract has both a long and a short side.

In derivatives markets such as perpetual futures, each open contract corresponds

For lunch today, I had fried rice and an egg tart. 😋
What did everyone have for lunch?
I had fried rice and an egg tart for lunch. 😋
What did everyone have for lunch today?

Deutsche Bank has officially launched its digital asset custody service, allowing institutional and corporate customers in Europe to store and transfer cryptocurrencies through the bank.
The service went live on November 11, less than two months after the bank first announced its plans.
Supported assets include Bitcoin, Ethereum, and selected stablecoins such as USDC and EURC.
But what exactly does crypto custody mean?
Instead of institutions managing their own private keys and wallets, Deutsche Bank provides the infrastructure to safeguard digital assets on their behalf.
The system includes b

In BTC trading, why is patience more important than prediction?

In BTC trading, many people study the market every day, trying to predict whether the next candlestick will rise or fall. Some constantly switch between technical indicators, some watch every price fluctuation, and others worry about missing any trading opportunity.

But one easily overlooked issue is this: even if you can correctly judge the market’s general direction, that doesn’t mean every entry will be profitable.

Why is patience so important?

First, the market doesn’t offer trading opportunities at every moment. BTC often

It looks like an ordinary GTA6 promo video
But it’s being posted by Rockstar’s official account
🙃🙃🙃
Rockstar, you have an official account now...

Could the future itself become a tradable asset? Prediction market trading volume continues to grow, and a new wealth game is unfolding!

Some people trade stocks, others trade gold, and now people are starting to trade opinions about the future.
The rise of prediction markets has added an interesting new way to play the financial markets. Participants express their views on future events, with market prices reflecting expectations about the probabilities of different outcomes.
When major events approach, market discussions often become more active. New information keeps emerging, participants

From reading the news to trading the news! Prediction market trading volume is growing, and it could become a big business in the future

People used to read the news to understand the world. Now, some have already started studying market probabilities!
Prediction markets are appealing because they connect real-world events with financial trading. Economic policies, election results, technological breakthroughs, and even social hot topics can all attract market attention.
When major events happen, participants adjust their views based on new information, and market prices may fluctuate accordi

What Are Stablecoins? Are They Really Stable?

In the cryptocurrency market, stablecoins are often used for trading, transfers, and asset settlement.

Unlike highly volatile crypto assets such as Bitcoin and Ethereum, stablecoins are usually pegged to fiat currencies such as the U.S. dollar, with the aim of keeping their prices relatively stable.

But there is an easily overlooked issue: relative price stability does not mean an asset is absolutely safe.

I. How Do Stablecoins Work?

Stablecoins typically use different mechanisms to maintain price stability, mainly including the following type

Can Smart Contract Audits Guarantee Security? Understanding the Blind Spots Behind Audit Reports

In the Web3 world, smart contract audits are often seen as important proof of a project’s security.

When a project announces that it has completed a third-party security audit, users usually feel more confident using it. But there is an easily overlooked issue: passing an audit does not mean absolute security; failing to find a vulnerability does not mean none exists.

Smart contract audits can help identify potential code flaws, permission configuration issues, and some risks related to economic

Bitcoin lightning network capacity dropped to 2021 level
crashed from 5800 BTC to just 3200 BTC
almost 45% of its capacity wiped out

In BTC trading, why is patience more important than prediction?

In BTC trading, many people study the market every day, trying to predict whether the next candlestick will rise or fall. Some constantly switch between technical indicators, some watch every price movement, and others worry about missing any trading opportunity.

But one easily overlooked point is that even if you can correctly judge the market’s general direction, that doesn’t mean every entry will be profitable.

Why is patience so important?

First, the market doesn’t offer trading opportunities at every moment. BTC often mov

CoreWeave's business is really hard to make sense of.
CoreWeave's stock surged nearly 25% last night. After going through its latest earnings report, I found the company's current situation pretty interesting.
On one hand, AI computing capacity is in such short supply that orders are pouring in. On the other, its debt keeps piling up, and its earnings aren't even enough to cover the interest.
Let's look at the earnings report.
Third-quarter revenue was $3.661 billion, up 168% year over year. Backlog reached $132.5 billion, and full-year revenue guidance was raised to $13 billion to $13.3 billi

How can you avoid getting chopped up in a BTC sideways market?

In BTC trading, sideways markets often test traders more than one-way markets. When prices rise, many people worry about missing out and rush to chase the rally; when prices pull back, they fear further declines and hurriedly stop out. When prices rise again, those who just exited can’t help jumping back in. After several rounds, they may not have misjudged the direction by much, but their accounts have already taken a noticeable drawdown.

So how can you reduce ineffective trades in a sideways market?

First, identify the trading

Both long and short positions continue to be profitable. Previously, we repeatedly advised entering long positions at the low price level of 2020 and around 73200; yesterday, we repeatedly advised entering short positions at 2080-2100 and above 74300. Overall, there was still plenty of room for gains. #Gate直通IPO第三期Anthropic