Bitcoin Open Interest Surges Past $40B as Price Nears $70K👻
Bitcoin's open interest in derivatives hit a new record on Oct. 21, surpassing $40.5 billion, as BTC approached the $70,000 mark.
According to CoinGlass, this surge in open interest, which reflects the total value of outstanding futures contracts, suggests increased leverage and potential volatility. The Chicago Mercantile Exchange (CME) led the way with 30.7% of the open interest, followed by Binance at 20.4% and Bybit at 15%.
High open interest can lead to rapid price swings, as sharp movements often trigger liquidations, forcing mass sell-offs. This scenario previously played out in August, when Bitcoin saw a 20% price drop, losing nearly $12,000 in two days.
Bitcoin briefly touched $69,380 on Oct. 21 but faced resistance and pulled back to $69,033. With BTC now just 6.4% below its all-time high of $73,738, a breakout above $70K could fuel a rally in altcoins like Ethereum (ETH) and Solana (SOL), both of which are currently outperforming BTC in daily gains.
