Bitcoin Open Interest Reaches $69,000 ATH Levels, What This Means For Price
19 Februar 2024 - 6:00PM
NEWSBTC
The Bitcoin open interest has been on the rise over the last few
weeks as the price has climbed continuously. This sustained rise in
the open interest is a reflection of the heightened interest in the
cryptocurrency since the United States Securities and Exchange
Commission (SEC) approved Spot Bitcoin ETFs for trading. The BTC
open interest has now climbed to historical levels, reaching 2021
all-time high levels. Bitcoin Open Interest At 2021 Levels
According to data from Coinglass, the Bitcoin open interest has
risen to more than $24 billion. This growth represents around a 50%
jump in the open interest since the year 2024 began. But more
importantly, the open interest has risen to levels not seen since
2021. Related Reading: 4 Surprising Insights From Coinbase’s
Earnings, COIN Sees Bullish Surge Looking at the open interest
chart, the last time that the Bitcoin OI was this high was back in
November 2021, when the cryptocurrency reached its all-time high
price of $69,000. This rise in the OI has been consistent across
crypto exchanges, with CME, Binance, and ByBit leading the charge
and commanding more than 50% of the open interest. Source:
Coinglass The continuous rise has also come with a rise in the
greed levels among crypto investors. Currently, the Crypto Fear
& Greed Index is sitting firmly in Greed, suggesting that
crypto investors are in a place where they are willing to take more
risks than usual. Implications For The BTC Price With the Bitcoin
open interest this high, it could end up being negative for the BTC
price. This is because past performances where the open interest
has risen so rapidly have often ended in a market crash. The same
was the case in 2021 when the Bitcoin OI had set its previous
record. Related Reading: $400 XRP Price Point: Analyst Breaks Down
The Future Surge Date In 2021, when the BTC price crossed $69,000
and the open interest crossed $22 billion, the euphoria was
incredibly high as it is now. However, this would be short-lived,
with a market crash happening shortly after. The BTC price would
eventually go from $69,000 to $46,000 by December, dropping by
almost 40% in the space of one month. If this same trend were to
repeat itself in the current trend, then there could be a massive
crash in the cards for Bitcoin. A similar decline would see Bitcoin
fall back toward $41,000, which would wipe out the gains of the
last few weeks. However, there are different factors at play in the
current market, such as Spot Bitcoin ETF issuers seeing massive
interest in their exchange-traded products. Just last week, inflows
into Spot BTC ETFs reached a new record of $2.2 billion. So if
these large institutions continue buying BTC to meet the demand of
their customers, then the BTC price could continue to rally. BTC
bulls push price above $52,300 | Source: BTCUSD on Tradingview.com
Featured image from Barron’s, chart from Tradingview.com
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