2024

Bitcoin

Bitcoin (BTC) price crossed $48,000 on Feb. 9, but weekend activities from derivatives traders suggest that more action will follow in the coming days.&nbsp; 
The total capital stock in the BTC futures markets has crossed the recent peak recorded during the spot ETF approval euphoria on Jan. 11, sparking optimism that <a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a> price could soon follow suit.&nbsp;&nbsp; 
<h2 class="wp-block-heading" id="bitcoin-open-interest-approaches-22-billion-first-time-since-april-2021">Bitcoin open interest approaches $22 billion first time since April 2021</h2> 
The <a href="https://crypto.news/bitcoin-etfs-flows-could-bring-btc-to-112k-price-cryptoquant-suggests/" data-type="post" data-id="14247493">spot ETF</a> approval on Jan. 11 has increased public interest in BTC as a legitimate asset class, leading to a flurry of institutions allocating a significant chunk of their portfolio to acquiring BTC in recent weeks.&nbsp; 
However, vital market trends show bitcoin derivatives markets have witnessed a more significant influx of capital. Coinglass’ open interest metric tracks real-time changes in total capital stock invested in BTC perpetual futures markets.&nbsp; 
BTC open interest (OI) hit a milestone on Feb. 12, crossing the $21.8 billion mark, its highest since March 2022.&nbsp; 
A closer look at the charts shows that BTC OI has already increased by $4.5 billion (25%) so far February 2024.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/6Kgu06LtUW8r_RrI-MBhTKbQHbz-LdhqIv1jJm7_u1qlP_qlaTgmLycK7cZ44mr1ABRYPVXA17FEY5qnxCo_gT06WDvHEh_GnppjmKZPbqwlJVAszI8L0wog77jptGMluxcRFVvgJRTWOOaJo3BxaTg" alt="Bitcoin (BTC) Open Interest vs. Price ">
 <figcaption class="wp-element-caption">
 Bitcoin (BTC) Open Interest vs. Price Source: <a href="https://www.coinglass.com/currencies/BTC" target="_blank" rel="noreferrer noopener">Coinglass</a>
 </figcaption>
</figure> 
Interestingly, this 25% jump in OI between Feb. 1 and Feb. 12 has now outpaced the BTC spot price which has only grown 15% from $41,860 to a peak of $48,820 during that period.&nbsp; 
Typically, such a rapid growth in OI is a prime signal that the market is welcoming new participants injecting fresh capital inflows. But when the OI growth outpaces spot prices, it can be a bullish signal for a number of reasons.&nbsp; 
Firstly, it indicates a sense of urgency among traders who are looking to quickly capitalize on the current dominant <a href="https://crypto.news/bitcoin-bullish-but-volatile-focus-turns-to-new-crypto-project/" data-type="post" data-id="14222152">bullish</a> sentiment in the market. 
Secondly, the robust interest from traders and investors signals confidence in the BTC’s fundamental drivers with respect to the prevailing macro economic conditions.&nbsp; 
<h2 class="wp-block-heading" id="btc-price-forecast-bullish-50-000-target-still-in-play">BTC price forecast: bullish $50,000 target still in play&nbsp;</h2> 
At the time of writing on Feb. 12, BTC is currently trading at $47,800. The last time BTC open interest reached its current $22 billion mark, spot prices were well above the $50,000 range.&nbsp; 
Hence, with BTC&nbsp;price currently undervalued relative to the capital inflows into the derivatives markets, a bullish attempt at reclaiming the $50,000 target could be in play in the coming days.&nbsp; 
However, as observed in recent weeks, BTC bulls face significant resistance at the $48,900 territory.&nbsp; 
IntoTheBlock’s global in/out of the money data shows that 3.3 million addresses had acquired 1.2 million BTC at the minimum price of $48,915. Considering that they’ve been holding at a loss for nearly 3 years, a large number of those investors could exit once prices approach their break even point.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/jwlpPh4XoY6i_A8pKyBv9tp47hZijOMHdGoaek71JxS2XHYegWqQNMyQ_ave1e8g3sRCTYZcjrmTtLszVD313MX9ZAinKlcrvlJ3hj6CbZhFSpAw8U8BAiYnby8Slw09lpsA2Qn6T7s835mLU2OOvxA" alt="Bitcoin (BTC) Price Forecast, Feb 2024">
 <figcaption class="wp-element-caption">
 Bitcoin (BTC) Price Forecast, Feb 2024. Source: <a href="https://app.intotheblock.com/coin/BTC/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="noopener">IntoTheBlock</a>
 </figcaption>
</figure> 
If the bulls can scale that sell-wall, a retest of the $50,000 territory could be on the cards as predicted.&nbsp; 
On the flipside, the bears could regain foothold if they can force a major downswing below $40,000. But that seems far-fetched considering the looming support buy-wall at $42,000.&nbsp; 
At that zone, 6.7 million addresses that acquired 3.01 million BTC at the average price of $42,047, could make frantic covering purchases to avoid slipping into a net-loss position. 
 Read more: <a href="https://crypto.news/bitcoin-etfs-flows-could-bring-btc-to-112k-price-cryptoquant-suggests/"> Bitcoin ETFs flows could bring BTC to $112k price, CryptoQuant suggests </a>

Bitcoin hits 3-Year Peak open interest at $22B, here’s what it means for BTC price

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