Did you know? Bitcoin open interest breaks $40 billion mark, approaching $70,000

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Higher open interest means higher leverage, which could trigger another write-off if the position is liquidated.  

On October 21, open interest in Bitcoin derivatives hit an all-time high, with BTC close to breaking the $70,000 price point.  

CoinGlass reported in an article on October 21 X that Bitcoin's open interest (OI) has reached an all-time high of $40.5 billion in Bitcoin $95,355 futures contracts.

Open interest is the value or number of open futures contracts that have not yet expired. It measures the amount of money invested in Bitcoin derivatives at a specific time, and the higher the open interest, the higher the leverage and volatility in the system may be.

CME holds the largest share of OI at 30.7%, followed by Binance at 20.4%, and then Bybit at 15%.

At times of high OI, large price swings can trigger chain liquidations that force a “massive sell-off” in the spot market, causing a sharp drop in BTC prices.

The last such plunge occurred in early August, when BTC prices fell nearly 20%, or about $12,000, in less than two days, falling below $50,000.

TradingView data shows that the asset’s price has soared, reaching $69,380 in early trading on October 21. However, the asset was rejected at resistance and fell back to $69,033 at the time of this article’s publication.

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