Bitcoin’s Price Rise Pushes Futures Open Interest to All-Time High
open interest Bitcoin futures It rose to an all-time high on centralized exchanges. This unprecedented rise follows the significant rise in Bitcoin price and reflects the growing trading excitement surrounding the digital currency. Data from Coinglass reveals that the total open interest in Bitcoin futures exceeded $26 billion, surpassing the previous high recorded in the last quarter of 2021.
Increased market activity
The recent surge in open interest has surpassed all-time highs for lakes in November 2021. Bitcoin It reached $69,000, indicating increased market activity. Representing the outstanding value of all Bitcoin futures contracts on exchanges, this index is an important parameter that determines the public’s mood and trading interest in the asset.
The beginning of 2024 saw open interest in Bitcoin futures gradually increasing, coinciding with the Bitcoin price rising to an unprecedented high of $64,000.
Driving Forces Behind the Bitcoin Rally
Additionally, this rally in open interest is supported by Coinglass data, which highlights that open interest in Bitcoin futures from exchanges such as Binance, OKX, and Deribit has increased to over $21 billion.
This increase in interest, especially in retail-focused exchanges, indicates a strong speculative buying frenzy among retail investors. Continuous futures trading It is trading at premiums of $70 to $80 above the spot price on platforms like binance, further proving the bullish outlook of the market.
Effects of Increasing Open Interest
The increase in open interest and the corresponding increase in Bitcoin price have significant implications. For example, open interest According to Glassnode, the weighted average funding rate recently reached 109% on an annualized basis; This is a level not observed since April 2021.
This increase in funding rates, combined with short selling of approximately $750 million between February 25-28, underscores the intense speculative dynamics in the market. However, this environment also brings risks as unwinding positions could trigger a series of lengthy liquidations.
Despite these potential challenges, the outlook for Bitcoin and the broader cryptocurrency market remains positive. The integration of spot ETFs into asset management companies and the rapid absorption of circulating liquid supply by net inflows, outpacing the production rate of Bitcoin miners, is contributing to constructive market sentiment.
There is also significant inflow into US-based markets. Spot Bitcoin ETFIn particular, the fact that BlackRock’s iShares Bitcoin ETF captured 70% of almost $1.8 billion in the first three days of the week further strengthens this optimistic view.
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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