Bitcoin Futures Open Interest Surges to Over $21 Billion
The notional open interest, representing the dollar value locked in active Bitcoin (BTC) futures contracts, has reached its highest level in more than two years. CoinGlass data shows that the open interest in both perpetuals and standard futures has surpassed $21 billion, a level last seen in November 2021 when Bitcoin hit its all-time high of around $70,000. Year-to-date, Bitcoin futures open interest has surged by 22%, coming close to the previous record of $24 billion observed in mid-November 2021.
Rise in Open Interest Suggests Renewed Interest in Futures
The rise in open interest indicates a renewed interest in leveraged products like futures and confirms the current bullish sentiment in the market. Bitcoin’s recent rally has been driven by significant inflows into newly launched spot ETFs in the United States. While leverage can amplify both profits and losses, the overall leverage in the market remains relatively low. This suggests a lower likelihood of sudden liquidations of long positions, which could trigger a significant price crash.
Analysts Expect Bitcoin to Reach $70,000 This Year
Analysts at investment firm Bernstein expect Bitcoin to surpass its previous all-time high and potentially reach $70,000 this year. They express confidence in the cryptocurrency’s risk-reward profile and believe no significant challenges will impede its ascent. Similarly, Anthony Scaramucci, founder of hedge fund SkyBridge, predicts that Bitcoin could potentially reach $170,000 based on growing demand for ETFs and an upcoming halving event scheduled for April.
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