Coinspeaker Record $39.4B in Bitcoin Open Interest Sparks Speculation of Imminent Price Move
Bitcoin futures’ open interest has surged to a new record high, signaling increased investor demand for the leading cryptocurrency.
This rise in open interest, combined with other market indicators, suggests that a significant price movement could be imminent.
Bitcoin Open Interest Reaches All-Time High
Bitcoin futures’ open interest has risen to an unprecedented $39.46 billion, indicating a significant increase in investor interest. This new peak surpasses the previous high of $39.03 billion set on March 29, 2024, according to data from CoinGlass.
Open interest measures the total number of outstanding positions in the futures market, and the current figure suggests heightened activity and liquidity in Bitcoin. If the momentum persists, a Bitcoin rally could be on the horizon.
Market Indicators Signal Potential Breakout
The record open interest, along with other market indicators, points to a potential breakout for Bitcoin’s price. Over 75% of Bitcoin’s short-term holders were in profit as of July 24, indicating strong retail demand. Bitcoin’s dominance in the cryptocurrency market has also been on the rise.
Benjamin Cowen, CEO of Into The CryptoVerse, noted in a July 29 post on X that Bitcoin’s dominance achieved its highest weekly close of this cycle, suggesting BTC could continue to gain market share in the coming months.
Crypto analysts are setting their sights on Bitcoin’s next major target at $71,500, with the possibility of reaching new all-time highs. Popular analyst Rekt Capital mentioned in a July 27 post that Bitcoin’s price could revisit the range high of around $71,500 soon. Bitcoin is currently trading 5.8% below its all-time high of over $73,750 recorded on March 14.
If Bitcoin continues to trade above the key resistance level of $67,275, the cryptocurrency is likely to attract more buyers, potentially pushing the price toward new highs. However, if Bitcoin falls below $67,275 again, sellers might target a drop to the $64,000 level.
Bitcoin Short-Term Price Catalysts
The price action will depend significantly on the inflows into US-based spot Bitcoin exchange-traded funds (ETFs), which saw $795 million in net inflows last week, marking the fourth consecutive week of positive inflows, according to Dune data.
Upcoming US economic reports, including Job Openings, Consumer Confidence, and the FOMC Policy Decision, will be crucial in determining Bitcoin’s short-term price direction.
Trump’s Comments Boost Sentiment
Bitcoin’s recent price increase is also linked to former President Donald Trump’s supportive remarks about cryptocurrency. At the Bitcoin 2024 convention in Nashville, Trump pledged to end what he called the “persecution” of the crypto industry if he wins the presidential election.
He promised to make the US a leader in cryptocurrency and establish a national Bitcoin reserve. Following his comments, Bitcoin’s price rose over 3% to $69,745, the highest level since June 12. The anticipation of favorable regulatory changes under Trump’s potential leadership could further strengthen Bitcoin’s rally prior to the November election.
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Record $39.4B in Bitcoin Open Interest Sparks Speculation of Imminent Price Move
