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Bitcoin Open Interest Reaches $18.2B Following BTC’s Surge Above $72K

Published 09/04/2024, 06:08
Updated 09/04/2024, 08:15
© Reuters. Bitcoin Open Interest Reaches $18.2B Following BTC’s Surge Above $72K
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Coin Edition -

  • Bitcoin OI reached an all-time high, aligning with its recent uptick above $72k.
  • CryptoQuant Netherlands’ Community Manager speculates Bitcoin OI will reach $18.2B.
  • March 2024 was the previous all-time high for Bitcoin OI when it surged past $73k.

Bitcoin Open Interest has surged to an all-time high (ATH) amidst Bitcoin’s recent uptick to $72k. Maartun, the community manager at CryptoQuant Netherlands, shared an X (formerly Twitter) post on April 8, unveiling Bitcoin Open Interest’s recent rally to reach the ATH of $18.2 billion.

Open Interest (OI) tracks the total number of Bitcoin derivatives contracts active on all exchanges. Thus, OI serves as an indicator of the total influx of capital into the Bitcoin derivatives market. Usually, investors would open more positions in the derivatives market when the OI values rise. Such a scenario may lead to an increase in the volatility of Bitcoin.

At press time, Bitcoin is trading at $71,270, marking a marginal 24-hour increase of 2.73%. The pioneer cryptocurrency’s performance over the past week was more appreciable, as it marked a weekly increase of 7.1%. In addition, Bitcoin surged over 4.3% in 30 days.

According to the CryptoQuant analyst’s research, the rally in Bitcoin Open Interest aligns with the rally in Bitcoin price. Previously, the OI hit its all-time high when Bitcoin surged past $73k to reach its new all-time high of $73,700 on March 14, 2024. Subsequently, the Bitcoin market experienced high volatility, trading below $65k.

Source: CryptoQuant

With the volatility in the Bitcoin price, high liquidations naturally follow. While the liquidations push the price up, the cycle continues. Such a series is known as a “squeeze.” According to Coinglass data, a massive 54,156 traders were liquidated over the past 24 hours.

The post Bitcoin Open Interest Reaches $18.2B Following BTC’s Surge Above $72K appeared first on Coin Edition.

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