Home Cryptocurrency Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this month

Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this month

by Serge Shlykov

The number of open Bitcoin contracts has hit a record high, signaling investors are anticipating the cryptocurrency’s next bull run amid predictions that the digital currency will surge to new all-time highs in August.

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It is the first time in six months that the open interest has reached its prior record high, with Bloomberg’s Mark Cudmore predicting another spike up to $20k.

In the last few days, Bitcoin has seen a rise in price and open interest. The cryptocurrency is expected to reach $19000 by the end of this month and it’s already at an all-time high. Read more in detail here: bitcoin price prediction.

According to a new estimate, Bitcoin (BTC) will see “explosive” price activity in 2022 when derivatives markets return to form.

Vetle Lunde, an analyst at Arcane Research, verified in a tweet on Jan. 4 that BTC denominated open interest (OI) has returned to all-time highs reached in November.

Open interest necessitates “flash mobs” in the coming weeks.

During the end-of-year BTC/USD pullback, bitcoin futures and options took a battering, but as the Christmas season came to a conclusion, a consensus started to build around a significant rebound.

Some predict that institutional traders will become the dominant force in Bitcoin markets, and derivatives are already showing indications of increased interest.

OI is now back to where it was in the third week of November, when BTC/USD achieved all-time highs of $69,000.

Unlike back then, though, financing rates are presently at a neutral level, laying the groundwork for a turbulent shift.

“With the leverage mounting on neutral to slightly below neutral financing rates, BTC denominated open interest in BTC perpetuals exceeded November highs today. To be honest, it seemed explosive “Lunde added his two cents.

Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this monthAnnotated graphic of BTC OI vs. Binance financing rate. Vetle Lunde/Twitter is the source of this information.

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Lunde isn’t the only one who thinks this way. Filbfilb, co-founder of trading platform Decentrader, acknowledged the optimistic status of OI activity in a separate post on Monday.

He commented, “OI quite high compared to Market Cap.. doubt we see it continuing beyond the final week of this month without explosions.”

Ethereum reaches its first all-time high in 2022.

BTC/USD was trading at $47,380 at the time of writing Tuesday, according to data from Cointelegraph Markets Pro and TradingView, rebounding from a two-week low.

As BTC withdrawals start in January, Bitcoin exchange balances are trending back to record lows.

While experts were generally calm about the activity on short timeframes, cryptocurrencies remained the focus of attention.

“For cryptocurrencies, the time of highest financial potential is still now,” Cointelegraph writer Michal van de Poppe stated, reaffirming past opinions about the prospects given by alternative marketplaces.

Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this month1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.

The biggest cryptocurrency by market cap, Ether (ETH), hit $3,879 on the day, its greatest performance in 2022 thus far.

Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this month1 hour candle chart of ETH/USD (Bitstamp). TradingView is the source of this information.

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