Bitcoin’s open interest is like a gauge of how excited investors are about the cryptocurrency. When it hits a new high, it means a lot of people are placing bets on Bitcoin, which can have big implications for the price.
Open Interest Hits a New Record
Recently, Bitcoin’s open interest soared to a new all-time high, topping $39.5 billion. This is a huge jump from earlier this year when it dipped below $30 billion. The surge was fueled by major exchanges like Binance, Bybit, and OKX, where open interest increased by about 8%.
What Does This Mean for Bitcoin’s Price?
Historically, when Bitcoin’s open interest has reached a new high, it’s often been followed by a price drop. Back in March, the open interest hit a record, and Bitcoin’s price fell by 20% within a couple of months.
This time, Bitcoin’s price did dip a bit after the open interest hit its new high, falling from $70,000 to below $67,000. If the historical trend continues, we could see Bitcoin drop by more than 10% and fall below $60,000.
It’s important to remember that past performance isn’t always a guarantee of future results. However, the recent record high in open interest is a significant event that investors should keep an eye on. /p>
