Bitcoin futures have recently reached a record-breaking open interest of $39.46 billion, surpassing the previous high of $39.03 billion set on March 29, 2024. This significant milestone indicates a surge in investor demand for Bitcoin, the world’s largest cryptocurrency.
Significance of high Open Interest (OI)
Open interest tracks the total number of outstanding futures contracts that have not been settled, providing insight into market activity and liquidity. The new record in open interest suggests that more investors are betting on Bitcoin, which could signal a forthcoming price breakout. Such high open interest often precedes major price movements, and the current spike could be a precursor to Bitcoin reaching new highs.
In addition to this record of open interest, Bitcoin’s short-term holders are seeing substantial profits. As of July 24, more than 75% of these holders are in the green, a positive sign that often correlates with increased retail interest and potential upward momentum in Bitcoin’s price.
Bitcoin’s dominance in the overall cryptocurrency market is also on the rise. Benjamin Cowen, the CEO and Founder of Into The CryptoVerse pointed out in a July 29 X post that Bitcoin’s dominance recently had its highest weekly close of the current cycle. Cowen forecasts that Bitcoin will continue to gain market share in the months ahead, further strengthening its position in the market.
Next target for Bitcoin
Crypto analyst Rekt Capital has identified $71,500 as the next major target for Bitcoin. In a July 27 X post, Rekt Capital noted that Bitcoin’s price is currently clustering between $65,000 and $71,500. This range indicates that Bitcoin could potentially revisit the $71,500 level and even rally to new all-time highs. Currently, Bitcoin’s price is about 5.8% below its peak of over $73,750, which was reached on March 14.
#BTC The clustering continues between $65000 and ~$71500 As a result, there is scope for Bitcoin revisiting the Range High at ~$71500 at some point in the future$BTC #Crypto #Bitcoin https://t.co/mIuMJajbNs pic.twitter.com/l7eruRJ1oy
— Rekt Capital (@rektcapital) July 27, 2024
The future movement of Bitcoin’s price will also be influenced by the activity in US-based spot Bitcoin exchange-traded funds (ETFs). Recent data from Dune shows that these ETFs experienced $795 million in net inflows last week, marking the fourth consecutive week of positive inflows. This ongoing interest from institutional investors could provide additional support for Bitcoin’s price and contribute to its potential breakout.
With record open interest, significant short-term holder profits, increasing market dominance, and strong ETF inflows, Bitcoin is showing several bullish signs that could lead to a major price breakout in the near future.
