Bitcoin open interest has expanded by $2.3 billion — roughly 27,000 BTC — since Sept. 30, and a simultaneous rise in perpetual funding rates indicates traders are paying a premium to maintain bullish positions.

The build-up in derivatives activity comes ahead of Friday's U.S. jobs report, with traders adding positions as the price climbs above $86,000. The monthly employment release is among the most closely watched pieces of U.S. economic data, as it can influence expectations for Federal Reserve interest-rate policy — a factor that shapes appetite for risk assets such as crypto.

Open interest — the total value of outstanding futures and perpetual contracts that have yet to be closed or settled — has risen to approximately 653,000 BTC ($56.2 billion) from 626,000 BTC on Sept. 30, an increase of 27,000 BTC ($2.3 billion), or roughly 4.3%, according to CoinGlass data. Rising open interest shows traders are adding exposure, although it does not reveal whether they are betting on prices rising or falling.

Bitcoin has climbed from around $83,500 to $86,500 over the same period. A price increase coinciding with rising open interest suggests fresh positions are helping support the rally.

Meanwhile, the perpetual funding rate has climbed from around 3% to 10% in the same time frame. Perpetual futures, unlike dated futures, have no expiry, and funding is a periodic payment exchanged between traders holding long and short positions, designed to keep perpetual prices close to the spot price. When funding is positive, traders betting on higher prices pay those betting on lower prices.

The increase points to stronger demand for bullish exposure, with traders willing to pay more to maintain their positions ahead of the jobs report.

There is a caveat: open interest of approximately 625,000 BTC at the end of September was near its lowest level in 12 months. While speculative activity has begun to recover, the recent increase comes from a low base. Higher funding signals a more bullish market, but it also raises the cost of holding long positions and can leave leveraged traders more vulnerable to a sudden price reversal. With the data due Friday, whether open interest and funding hold at these levels once the report lands will offer a read on how much of the newly added leverage stays in place.

Crypto-linked equities, often used by stock-market investors as a proxy for bitcoin exposure, are also moving higher in Friday's premarket trading as a result. Strategy (MSTR), the largest corporate holder of bitcoin, and Strive (ASST) are each up around 3%, while Coinbase (COIN) and Robinhood (HOOD) have gained approximately 2%.

CoinDesk reporters James Van Straten and Jamie Crawley contributed to this report. Original article: CoinDesk