Bitcoin Futures Open Interest Surpasses $40.5 Billion, Sets New Record, Reports CoinGlass
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According to CoinGlass, the open interest (OI) in Bitcoin futures has reached an unprecedented level of $40.5 billion on October 21, marking a new milestone in the world of cryptocurrency derivatives.
The data reveals that the Chicago Mercantile Exchange (CME) holds the largest share of Bitcoin futures open interest, accounting for 30.7% of the market.
Binance follows closely with 20.4%, while Bybit comes in third with a 15% share.
Bitcoin Surpasses $70,000
The surge in open interest coincides 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 greater market volatility.
Periods of high open interest can result in significant market movements, particularly when prices experience sharp fluctuations.
Under such conditions, cascading liquidations can occur, leading to forced selling on the spot market and causing sudden drops in Bitcoin prices.
A similar event took place in August when Bitcoin prices plunged by nearly 20%, falling below $50,000 in just two days.
On October 21, Bitcoin reached an early trading high of $69,380 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.
Altcoins Outperform Bitcoin
In recent daily gains, altcoins such as Ether and Solana have outperformed Bitcoin.
Ether saw a 3.5% rise, reaching $2,750, while Solana experienced a 6% gain, nearing $170.
Both assets have since experienced slight corrections from their recent highs.
Bitcoin Open Interest Soars Amid Trump’s Increasing Election Odds
Bitcoin’s surge to a three-month high coincides with the anticipation of the upcoming U.S. presidential election on November 5.
Polls indicate a growing probability 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 Trump’s improving election odds, as his administration is perceived to have a more lenient stance on cryptocurrency regulation.
On Polymarket, bettors favor Trump over Harris with a 61% to 38% ratio.
With no major 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 in an interview with 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 dollar’s strength, particularly against those currencies.
