What is open interest in crypto?

Open interest is the total value of futures or options contracts that are still open. Here's how to read it alongside price.

Open interest is the total value of derivatives contracts, such as futures or options, that are still open and haven't been closed or settled. It measures how much money is currently riding on bets in that market.

Open interest vs trading volume

• Volume counts how much was traded during a period.
• Open interest counts how much is still in play right now.

If you open a trade and close it the same day, it adds to volume but not to open interest at the end of the day.

How to read it with price

Open interest is most useful next to price:

• Price up, open interest up: new money is joining the move. The rise has fresh participation behind it.
• Price up, open interest down: the rise is mostly shorts closing their bets. It can fade once they're done.
• Price down, open interest up: new bets on further falls, or longs adding. Pressure is building.
• Price down, open interest down: positions are being closed, often through liquidations. Selling may be running out of steam.

Why very high open interest matters

When open interest is unusually high, lots of borrowed money is in the market. That makes sharp moves in either direction more likely, because a small push can trigger a chain of forced closures.

How SteelWater uses it

Our daily read tracks open interest for BTC, ETH, SOL and XRP alongside the funding rate, and explains in one line what the combination suggests about today's market.

General market information for education only, not financial advice. Crypto-assets are highly volatile; never risk money you can’t afford to lose.