Bitcoin Futures Open Interest Sets New Record at $40.5 Billion, Reports CoinGlass
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CME dominates the Bitcoin futures market with a 30.7% share of open interest.
Last updated:
October 21, 2024 06:20 EDT
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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is an experienced crypto and finance journalist with over four years of expertise. Ruholamin has been featured in several renowned crypto publications…
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Last updated:
October 21, 2024 06:20 EDT
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Bitcoin derivatives have reached unprecedented levels as open interest (OI) in Bitcoin futures reached a new milestone of $40.5 billion on October 21, as reported by CoinGlass.
Data reveals that the Chicago Mercantile Exchange (CME) holds the largest portion of Bitcoin futures open interest, accounting for 30.7%.
Following CME, Binance holds 20.4% and Bybit holds 15%.
Bitcoin Surpasses $70,000 Threshold
The surge in open interest coincided with Bitcoin’s price approaching the $70,000 mark.
Open interest refers to the total value or number of outstanding futures contracts that have not yet expired.
It serves as a crucial indicator of market activity and investor participation in Bitcoin derivatives.
An increase in OI can indicate higher leverage in the system, potentially leading to increased market volatility.
Periods of high open interest can result in significant market movements, particularly when prices experience sharp fluctuations.
Under such circumstances, cascading liquidations may occur, leading to forced sales in the spot market and sudden drops in Bitcoin prices.
A similar event took place in August when Bitcoin prices plummeted by nearly 20%, falling below $50,000 in just two days.
On October 21, Bitcoin reached $69,380 in early trading but faced resistance, pulling back to around $69,033.
Currently, the cryptocurrency is 6.4% away from its all-time high of $73,738, according to CoinGecko.
Furthermore, altcoins such as Ether and Solana have outperformed Bitcoin in terms of daily gains.
Ether rose by 3.5%, reaching $2,750, while Solana experienced a 6% gain, nearing $170. Both assets have since experienced slight pullbacks from their recent highs.
Bitcoin Open Interest Surges as Trump’s Odds of Winning Increase
Bitcoin’s surge to a three-month high coincides with the anticipation of the upcoming U.S. presidential election on November 5.
Polls indicate an increasing likelihood of former President Donald Trump winning the election, which has strengthened the dollar.
His proposed policies on tariffs and taxes are expected to maintain higher U.S. interest rates, potentially weakening the currencies of trading partners.
Bitcoin has received a notable boost from
the improving odds of a Trump victory
, as his administration is perceived as taking a more lenient approach to cryptocurrency regulation.
On Polymarket,
bettors favor Trump over Harris
with a 61% to 38% margin.
With no significant economic events scheduled for this week, market attention is shifting towards corporate earnings and the potential risks surrounding the U.S. election.
Chris Weston, head of research at Australian online broker Pepperstone,
stated to CNBC
that traders face a crucial decision on whether to increase election-related trades with only 15 days left until the vote.
Weston suggested that the best way to hedge against the risk of Trump’s tariff policies is to hold long positions in dollars against the euro, Swiss franc, and Mexican peso.
Brad Bechtel, global head of FX at Jefferies, echoed this sentiment, emphasizing that rising real interest rates were driving the strength of the dollar, particularly against those currencies.
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