Bitcoin: open interest on futures at all-time highs!

By Negativeland | Negativeland | 2 Mar 2024

Open interest in Bitcoin futures products has reached an all-time high: over $26 billion




Bitcoin still rising

According to data collected by Coinglass, open interest on Bitcoin futures products on CEX (mainly Binance, OKX and Deribit) would have reached its all-time high, even higher than that recorded in November 2021, in the midst of the latest bullrun.

The data signals not only greater trading activity around BTC, but also an increasingly optimistic approach among investors, who are betting on a bright future for Bitcoin.

Specifically, we are talking about 26 billion dollars, for a value that has increased steadily since the beginning of 2024, in parallel with the rise in the spot price of BTC (which reached $64k this week).



Futures point the way

The futures sector appears to be driven by the liveliness of the retail market. On Binance, perpetual futures were even traded at a "premium" of between 70 and 80 dollars compared to the spot price.

And to demonstrate how speculation is now becoming increasingly popular there are also the 750 million dollars in short liquidations between 25 and 28 February.

According to a Coinbase report, the positive movement in open interest could also bring negative consequences if some liquidations were to create a chain effect. However, it now seems to be a common opinion that ETFs continue to support the first cryptocurrency, with new inflows and increasingly higher trading volumes.



In fact, these are precisely the ones that are absorbing a large part of the demand in recent weeks, due to an increasingly limited circulating supply which is pushing the price of BTC towards new ATHs.

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Interesting and fresh news on the world of cryptocurrencies. The articles are courtesy of Luca Boiardi of The Crypto Gateway

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