Bitcoin Open Interest Surges in 2024

Bitcoin [BTC] open interest across all exchanges has reached a record-breaking $20 billion, as noted by Ki Young Ju, CEO of CryptoQuant.

Bitcoin [BTC] open interest across all exchanges has hit a record high, signaling anticipation of a major price movement.

Ki Young Ju, CEO of CryptoQuant, highlighted this development on March 23. According to his analysis, the total open interest in Bitcoin futures reached $20 billion on March 22. This surge in open interest comes as Bitcoin hovers just 8% below its previous all-time high (ATH).

This record-breaking open interest indicates that traders are preparing for a period of heightened market activity. Moreover, the increasing participation in futures markets is a key indicator of rising interest in Bitcoin, particularly among institutional investors.

At the same time, CME Bitcoin Futures open interest has also hit an all-time high. This simultaneous increase in both the price and futures positions suggests that traders are preparing for a period of heightened market activity, especially among institutional investors.

Bitcoin open interest surges in 2024

The relationship between Bitcoin’s price and open interest has been historically strong, especially during bull runs. In the previous rally from mid-2020 to late 2021, open interest and price moved upward together, driven by increased speculation and leveraged trading.

Open interest peaked alongside Bitcoin’s ATH in late 2021, reflecting traders’ confidence in the rising market.

However, during the bear market of 2022, both open interest and price dropped significantly, with traders exiting or reducing positions.

As Bitcoin recovered from its lows, open interest began to climb again, eventually reaching new highs in 2024. Despite Bitcoin still being slightly below its ATH, the rising open interest suggests that market participants are expecting a major price movement in the near term.

Whale accumulation and network activity

Data from IntoTheBlock shows that large Bitcoin holders have been consistently moving their holdings off exchanges, which is often a sign of accumulation.

Over the past 7 days, there has been a -1411.95% change in netflows to exchanges, indicating that whales are likely preparing to hold their Bitcoin for the long term.

On-chain metrics also reflect the growing interest. New addresses have increased by 9.59%, and active addresses are up by 8.20% over the past week.

This increase in network activity, coupled with Bitcoin’s rising price, suggests that user engagement is growing, contributing to the positive sentiment surrounding the market.

Whale transactions and short-term price outlook

Whale transactions have also been brisk, with 16.75K large transactions recorded in the past 24 hours. This activity, coupled with Bitcoin’s proximity to its ATH, could contribute to potential price movements in the coming days.

As BTC approaches its ATH, the combination of rising futures open interest, whale accumulation, and increased network activity points to the possibility of a significant price move.

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