Bitcoin Open Interest Spikes - A Sign of Price Surge?
Bitcoin (BTC), the world’s largest cryptocurrency, has extended its victory march amid FUD booming in the market. According to data, Bitcoin options, and futures open interest hit an all-time high (ATH) in March on the crypto exchange Deribit. However, Bitcoin’s price has increased by more than 25% over the past 30 days.
Key Takeaways
- Bitcoin (BTC), the world’s largest cryptocurrency, has extended its victory march.
- Traders are betting on a surge in Bitcoin price amid increased regulation by cryptocurrency companies.
- Bitcoin price has increased by over 3% in the last seven days.
- Crypto analyst Michael van de Poppe explained that Bitcoin has gone through a classic sweep.
- Many analysts remain optimistic about Bitcoin’s potential as an investment.
According to a report, Bitcoin options and futures open interest surged as global markets traded amid constant fear of a looming banking crisis. Genuine interest reached his ATH of 433,540 contracts at Deribit on March 23rd. He added that open interest over the past 12 months has averaged between 150,000 and 300,000.
Traders are betting on a surge in Bitcoin price amid increased regulation by cryptocurrency companies. About 206,979 contracts on Deribit call for a rise in his BTC price, with 93,857 calling for a bearish call.
It added that crypto investors have good reason to be bullish on Bitcoin’s current price. The price of BTC is said to have gained 69% in 2023, although it recently surpassed the expected price level of $28,000.
Bitcoin price has increased by over 3% in the last seven days. BTC is trading at an average of $28,021 at the time of writing. 24-hour trading volume increased 38% to $19.3 billion.
The report added that bitcoin futures are trading higher than before on the CME exchange. Suggests that investors are expecting prices to rise. April futures reportedly have him trading at $28,475. However, his May contract is trading at $28,645.
Crypto analyst Michael van de Poppe explained that Bitcoin has gone through a classic sweep. However, the trend is on the upside as the market is in a rallying vacuum of relief. He added that the BTC price could remain close to $40,000.
Open interest represents the total number of outstanding contracts in a specific market. As genuine interest grows, investors are increasingly interested in trading that asset.
The recent surge in Bitcoin futures open interest comes amid a rise in demand for cryptocurrencies from institutional investors. As more institutional investors enter the market, the overall trading volume and liquidity of Bitcoin futures are expected to increase.
Many analysts remain optimistic about Bitcoin’s potential as an investment. Some predict that the price could reach six figures by the end of the year, driven by a confluence of factors, including growing institutional adoption, continued support from retail investors, and a limited supply of new coins entering the market.
The recent surge in Bitcoin futures open interest suggests that more investors are becoming interested in cryptocurrencies.
While the short-term outlook for Bitcoin mainly depends on its ability to break through key resistance levels, its medium-term prospects remain favorable, driven by a growing acceptance among institutional investors and retail traders alike. However, potential regulatory risks threaten the market in the longer term.