Bitcoin’s Futures Market Skyrockets to All-Time High After Trump’s Endorsement Read CoinChapter.com on Google News
Nairobi (CoinChapter.com)—Bitcoin is at a critical juncture as its futures open interest reaches unprecedented levels. This surge follows the recent Bitcoin 2024 conference, where prominent pro-crypto narratives were spotlighted.
Held in Nashville, the conference drew key figures from the crypto industry, including former U.S. President Donald Trump, who endorsed the sector.
Unprecedented Rise in Bitcoin Futures Open Interest
Bitcoin’s futures market has witnessed a significant spike, with open interest reaching an all-time high of $39.46 billion, surpassing the previous high of $39.03 billion set on March 29, 2024, according to CoinGlass data.
Independent market analyst Horse noted this breakout, indicating a substantial increase in outstanding derivative contracts. This rise in open interest suggests a surge in new positions, often leading to increased market volatility.
Bitcoin price and Open interest (OI) charts. Source: X
Horse attributed the surge to shifting U.S. political sentiment towards cryptocurrencies. Trump’s endorsement at the Bitcoin 2024 conference boosted investor confidence, driving Bitcoin’s price higher despite uncertainties surrounding these bullish narratives.
The current peak in open interest highlights growing investor interest and liquidity in Bitcoin, which may signal a breakout toward new record highs.
Analysts Predict Market Movements Amid Record Open Interest
Market analyst Skew echoed Horse’s observations, stating that the Bitcoin perpetual futures market is currently “net long.” This means that more traders are betting on price increases.
Bitcoin Futures Open Interest Breaks Records. Source: X
Moreover, Skew emphasized the need for constant spot buying to support these long positions. A pause in spot buying could trigger forced long liquidations, leading to sharp price declines.
According to CoinGlass Data, Bitcoin’s price dropped to $66,400, resulting in the liquidation of over $87.13 million in leveraged long positions within 24 hours, with $87.13 million liquidated in just four hours.
BTC/USD 1-day price chart. Source: CoinMarketCap
As of July 30, the token trades at around $66,359.39, experiencing a 3.28% drop on the last day. Despite this decline, the overall market sentiment remains optimistic. The market cap stands at $1.31 trillion, while the 24-hour trading volume has surged by 125.56% to $41.77 billion.
The heightened trading activity suggests that investors are positioning themselves for potential price movements.
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