What Is Open Interest in Crypto?
Open interest explained: how it differs from volume, what rising and falling OI signal, and how to read OI alongside price.
Open interest vs volume
Open interest (OI) is the total value of all open perpetual-futures positions on a coin. Unlike volume — which counts every trade — OI measures how much leverage is currently open in the market.
Rising and falling OI
Rising OI means new positions and fresh leverage are entering. Falling OI means traders are closing out. A sudden drop in OI usually follows a liquidation cascade as over-leveraged positions get flushed.
Reading OI with price
Price up + OI up = new money backing the move (stronger trend). Price up + OI down = short covering rather than fresh demand. Heavy OI build-up plus one-sided funding flags a crowded, fragile setup.
FAQ
Is high open interest bullish or bearish?
Neither on its own — it depends on price. Rising OI with rising price suggests new buyers; rising OI with falling price suggests new sellers.
What does falling open interest mean?
Falling OI means positions are being closed, often after a liquidation cascade flushes leverage out of the market.
For information only — not financial advice. Explore the live data on the markets hub.