1 of 5 Bitcoin Price Metrics That Could Hint at a New ATH in 2024

I’ll talk about one metric per post

Bitcoin has recovered more than 25% from its low of $52,546 on September 6, currently sitting at $67,047. Technical and on-chain indicators suggest that BTC is likely to continue its recovery and reach a new record high.

$BTC Bitcoin Open Interest Hits All-Time High

Bitcoin’s perpetual futures funding rate has hit a multi-month high, currently at 0.0136%, suggesting that bullish sentiment could continue in the short term.

This is the closest it has been since June 7, when Bitcoin hit $71,950. A positive funding rate usually indicates bullish sentiment, but caution should be used in interpreting it due to the volatility of the crypto market

According to data from CryptoQuant, Bitcoin’s open interest (OI) across all exchanges hit a record high of $19.7 billion on October 15, indicating that prices can be volatile as more capital flows into the market.

CryptoQuant analysts believe that this uptrend in the derivatives market reflects increased liquidity and growing interest in the crypto space. The increase in funding rates also indicates bullish sentiment among traders.

While high OI confirms increased investor interest, it cannot be considered inherently bullish as futures buys (buyers) and sells (shorters) always match. The increase in open interest creates volatility rather than directional bias