- Bitcoin futures open interest on centralized exchanges reaches a new yearly high of $22.9 billion
- This indicates strong market activity and sentiment around the largest cryptocurrency.
Bitcoin futures have seen a significant increase in open interest on centralized exchanges, reaching a new high for the year and indicating a strong market activity and sentiment around the largest cryptocurrency.
The aggregated open interest for Bitcoin futures on centralized exchanges reached $22.9 billion. This is the highest level since the last quarter of 2021, when it peaked at about $24 billion.
Open interest is an indicator of increasing market activity and trader sentiment surrounding a certain asset. It is calculated as the total amount of all outstanding or “unsettled” Bitcoin futures contracts across exchanges.
The rise in open interest for Bitcoin futures coincides with the recent price rally of Bitcoin, which has surged to $52,300, a 23% increase year-to-date and a level last seen in December 2021.
The open interest in Bitcoin futures has climbed by almost 30% since the start of 2024. This indicates that traders are opening up more positions and anticipating larger price moves soon.
Ether Futures Anticipates Growth
Bitcoin futures are not the only crypto-based derivative contracts that have witnessed a growth in open interest. Ether futures, which are based on the second-largest cryptocurrency by market capitalization, have also seen a 50% increase in open interest since the start of 2024, reaching $10.5 billion. its trading price increased to $2,900, signifying a gain of more than 27% so far this year.
A major contributing factor to the current surge in interest in cryptocurrency-based derivatives is the launch of Bitcoin spot ETFs by companies like Fidelity and BlackRock in the last month.
In a comparatively short period of time, these exchange-traded funds (ETFs) have drawn inflows totaling over $4 billion, indicating investors’ interest in the broader cryptocurrency market. These ETFs follow the price of Bitcoin directly instead of through futures contracts.
Highlighted Crypto News Today:
Grayscale’s GBTC Outflows Slow, Analysts Caution on Further Decline
