Solana

Bitcoin

when

Open interest (OI) in Bitcoin derivatives hit a record high on Oct. 21, as Bitcoin’s price approached the $70,000 level. CoinGlass reported that the open interest on Bitcoin futures reached $40.5 billion, indicating a surge in activity for BTC derivatives.
Open interest represents the value or number of outstanding futures contracts that have not yet expired. It reflects the amount of capital invested in Bitcoin derivatives, with higher OI often signaling increased leverage and potential volatility in the market.
The Chicago Mercantile Exchange (CME) held the largest share of open interest, accounting for 30.7%, followed by Binance with 20.4% and Bybit at 15%.
Periods of high open interest can lead to significant market swings. If prices change rapidly, it may trigger cascading liquidations, resulting in forced selling and sharp price drops, commonly known as “flush outs.” The last major flush-out occurred in early August when Bitcoin’s price plummeted nearly 20%, or about $12,000, within two days, falling below $50,000.
On Oct. 21, Bitcoin reached a high of $69,380, according to TradingView data, but was rejected at this resistance level, pulling back to $69,033 at the time of publication. CoinGecko data indicates that Bitcoin is currently 6.4% below its all-time high of $73,738.
Cointelegraph reported on Oct. 20 that if Bitcoin surpasses the $70,000 mark, it could boost the performance of altcoins like Ether (ETH) and Solana (SOL). Both assets have been outperforming Bitcoin in daily gains, with Ether climbing 3.5% to exceed $2,750, while Solana gained 6%, reaching nearly $170 in early trading on Oct. 21. However, both assets experienced slight pullbacks since then.
The record-setting open interest highlights growing market activity and suggests that traders are positioning for potential significant moves in Bitcoin’s price.

Open Interest in Bitcoin Derivatives Hit Record High As $70,000 Within Reach

Crypto Intelligence

Other articles published on Oct 21, 2024

Vitalik Buterin Aims for Sub-2 Second Transfers Between Chains in Ethereum’s Future

UXLINK Celebrates 30,000,000 Registered Users Milestone, Surpassing 2025 Goal Two Years Ahead of ...

WazirX moved $75 Million worth user funds after hack: Coinswitch CEO

After TREMP’s Rally, Could DUM be the Next Politifi Token to Make Millionaires?

Bybit releases 15th proof of reserves, user Bitcoin assets up over 4.6% from September

Top 10 Events That Could Affect Bitcoin Price Trajectory This Week: October 21-25

Join our free newsletter for daily crypto updates!