Data snapshot: $JCT ｜1-hour open interest +13.62%｜Price +29.8%
What it is: Contract open interest reflects the combined demand for leverage and hedging; some positions are held solely to hedge spot risk.
Common interpretation: This shows changes in the number of coins in open interest. Price fluctuations themselves do not change this number, so it does indeed reflect the opening and closing of positions.
Any indicator only summarizes past movements; the market could just as easily move in the opposite direction.
#JCT
What it is: Contract open interest reflects the combined demand for leverage and hedging; some positions are held solely to hedge spot risk.
Common interpretation: This shows changes in the number of coins in open interest. Price fluctuations themselves do not change this number, so it does indeed reflect the opening and closing of positions.
Any indicator only summarizes past movements; the market could just as easily move in the opposite direction.
#JCT
