Bitcoin

Bitcoin futures’ open interest has reached a new all-time high, suggesting that investor demand for the world’s largest cryptocurrency is increasing. Could a price breakout be imminent?
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) open interest, a metric monitoring the total number of open positions in the underlying asset, has reached an all-time high of $39.46 billion across all exchanges.
The current figure surpasses the previous all-time high of $39.03 billion reached on March 29, 2024, <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noopener nofollow">according</a> to CoinGlass data.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/59cd225c-a06f-42e3-ba08-d245ec3a8f6c.png" alt="Record $39.4B Bitcoin open interest suggests imminent price breakout" title="">
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 BTC Futures open interest, all-time chart. Source: CoinGlass
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Bitcoin’s open interest is used by traders to gauge the interest and liquidity behind the asset. The current $39.46 billion peak shows increased investor interest in Bitcoin, which may precede a breakout toward new record highs.
Related: <a href="https://cointelegraph.com/news/marathon-digital-buys-100m-bitcoin-hodl-strategy">World’s largest BTC miner Marathon buys $100M BTC to go ‘full HODL’</a>
<h2 data-ct-non-breakable="true" id="bitcoin-breakout-could-be-imminent-based-on-short-term-holders-and-btc-dominance">Bitcoin breakout could be imminent, based on short-term holders and BTC dominance</h2>
The new record high in open interest, paired with other indicators, suggests that the Bitcoin price could be on track to break out to new all-time highs.
Notably, <a href="https://cointelegraph.com/news/bitcoin-75-percent-short-term-holders-profit-67k">over 75% of Bitcoin’s short-term holders</a> were in profit as of July 24. This could translate into more upward momentum for BTC since the short–term cohort is often used to gauge retail demand for Bitcoin.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/4d6b4e67-9796-4ac9-92d0-de8f0f12c191.png" alt="Record $39.4B Bitcoin open interest suggests imminent price breakout" title="">
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 Bitcoin: Short-term holder market value to realized value. Source: Glassnode
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Moreover, Bitcoin’s growing dominance suggests that it will devour increasingly more of the total crypto market capitalization, according to Benjamin Cowen, the CEO and Founder of Into The CryptoVerse.
Cowen <a href="https://x.com/intocryptoverse/status/1817755523254542525" target="_blank" rel="noopener nofollow">wrote</a> in a July 29 X post:
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 “Bitcoin dominance just had its highest weekly close all cycle. We should see BTC continue to reclaim more market share over the next few months.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/a6ed14ab-d516-4feb-8305-7166835b1843.jpeg" alt="Record $39.4B Bitcoin open interest suggests imminent price breakout" title="">
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 Bitcoin dominance chart. Source: Benjamin Cowen
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Related: <a href="https://cointelegraph.com/news/bitcoin-trump-pump-key-technical-signal-btc-price-71-5k">Bitcoin ‘Trump pump’ potential matches key technical signal — Can BTC break $71.5K?</a>
<h2 data-ct-non-breakable="true" id="can-bitcoin-price-breach-71-500-next">Can Bitcoin price breach $71,500 next?</h2>
Bitcoin’s next major target is the $71,500 mark before having the potential to rally to new all-time highs, according to popular crypto analyst Rekt Capital.
The analyst <a href="https://x.com/rektcapital/status/1817191237763350962/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in a July 27 X post to his 484,000 followers:
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 “The clustering continues between $65,000 and ~$71,500. As a result, there is scope for Bitcoin revisiting the Range High at ~$71500 at some point in the future.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/ae67b4d7-817e-43e2-ae36-a55bac8264a5.png" alt="Record $39.4B Bitcoin open interest suggests imminent price breakout" title="">
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 BTC/USD, 1-day chart. Source: Rekt Capital
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Bitcoin price is currently 5.8% down from its all-time high of over $73,750, recorded on March 14. Its price action will largely depend on the inflows into the US-based spot Bitcoin exchange-traded funds (ETFs).
The US spot Bitcoin ETFs saw $795 million worth of cumulative net inflows during the previous week, marking the fourth consecutive week of net positive inflows, <a href="https://dune.com/hildobby/btc-etfs" target="_blank" rel="noopener nofollow">according</a> to Dune data.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/389b8dad-c70f-4729-b357-ad8bce8db609.png" alt="Record $39.4B Bitcoin open interest suggests imminent price breakout" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF net flows, weekly, in US dollars. Source: Dune
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Magazine: <a href="https://cointelegraph.com/magazine/donald-trump-bitcoin-spot-ether-etf-debut-trading-hodlers-digest-cointelegraph-magazine/">Trump’s Bitcoin push, spot Ether ETF debut, and more: Hodlers Digest, July 21-27</a>

Record $39.4B Bitcoin open interest suggests imminent price breakout

Съдържание

Cointelegraph

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