Bitcoin’s price has been on a tear lately! Over the weekend, it shot past $85,000, a pretty impressive jump.
What’s Driving the Surge?
This sudden bullishness followed President Trump’s decision to exempt certain tech products from new trade tariffs. But that’s not the whole story.
Open Interest Explodes
Another key factor is the massive increase in Bitcoin’s “open interest.” Think of this as the total amount of money bet on Bitcoin’s future price through derivatives like futures and options contracts. A big jump in open interest usually means more people are placing bets, suggesting strong market confidence.
According to analyst Burak Kesmeci, Bitcoin’s open interest on Binance (the world’s largest crypto exchange) surged a whopping 15.8% in just 24 hours! That’s about $1.2 billion flowing into derivatives contracts in a single day, taking the total open interest on Binance from $7.6 billion to $8.8 billion.
Kesmeci points out that Binance isn’t just following the market; it’s leading it, with a massive 31.4% share of the overall market’s futures open interest (around $28 billion).
A Word of Caution
This huge jump in open interest also means increased market volatility. While exciting, it also carries a risk of sudden price swings and potential liquidations for both those betting on price increases and those betting on price decreases. So, if you’re thinking about short-term trades, proceed with caution.
Bitcoin’s Current Status
At the time of writing, Bitcoin is trading around $85,240, up over 2% for the week. It’s a pretty exciting time for Bitcoin investors!
