Open interest in Bitcoin derivatives surged past $40 billion on October 21, as the price of Bitcoin approached $70,000. This marks a new record in open interest for Bitcoin futures, signaling heightened leverage in the market.
Open interest (OI) refers to the total value or number of active futures contracts that are yet to be settled. High OI suggests significant investment in Bitcoin derivatives, which often leads to increased volatility. If the price moves sharply, it can trigger a cascade of liquidations, causing sudden drops in Bitcoin’s price.
Recent data shows that the Chicago Mercantile Exchange (CME) leads with 30.7% of the OI, followed by Binance with 20.4%, and Bybit at 15%. The last major price drop caused by this effect occurred in August when Bitcoin fell nearly 20% in just two days.
On October 21, Bitcoin reached a peak of $69,380 but was unable to break through resistance, pulling back to $69,033. Bitcoin is now only 6.4% below its all-time high of $73,738, signaling strong market activity.
Summary Review: Bitcoin’s open interest in futures contracts hit a record $40.5 billion as the price neared $70,000, indicating high leverage in the market. While this can lead to volatility and potential sell–offs, Bitcoin continues to trade just below its all-time high.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
