As a seasoned researcher with over two decades of experience tracking crypto markets, I must admit that the current surge in open interest on Binance is a fascinating development. Having closely followed the growth of this exchange since its inception, it’s incredible to witness its dominance in the market, now accounting for 35% of global open interest in crypto futures.
The cryptocurrency trading platform, Binance, has broken its previous record for highest total open interest, reaching over $8.3 billion in crypto derivatives. This spike in activity is happening concurrently with a significant rise in Bitcoin prices, which have just reached an unprecedented high since Donald Trump’s victory in the U.S. presidential election. Blockchain analyst Burak Kesmeci pointed out that Binance now controls approximately 35% of the global open interest for crypto futures, solidifying its powerful presence in the market.
BNB Price Set for a Rally as Binance Open Interest Soars to All-Time High
Based on information from CryptoQuant’s on-chain data, the value of open positions in cryptocurrency derivatives on Binance soared to an unparalleled $8.3 billion. This represents a notable 10.24% growth within a single day. This remarkable spike suggests a significant surge in trading activity on Binance, which now accounts for a substantial share of the global open interest in cryptocurrency futures.
Kesmeci noted that an uptick exceeding 3% on any given day suggests major changes in trading behavior, possibly indicating increased market volatility in the near future.
Furthermore, the rise in open interest coincides with Binance’s continuous expansion, accounting for approximately 35% of the global open interest in crypto futures. This substantial trading volume underscores Binance’s significant impact on shaping wider market movements.
Courtesy: CryptoQuant
The significant increase in open interest is primarily due to Bitcoin’s recent price surge, which reached an unprecedented high of $74K. This surge led to the liquidation of numerous short positions across major cryptocurrency exchanges, erasing over $370 million in short positions and causing a total liquidation volume of approximately $580 million. In essence, Bitcoin’s rapid price increase created a domino effect throughout the broader crypto derivatives market.
At the same time, the combined open interest on significant future trading platforms peaked at a record-breaking $23.3 billion, indicating widespread excitement in the broader market.
BNB Price Prediction and Price Action
With Binance’s open interest reaching new highs, there’s reason to believe that the price of BNB could also see significant increases. Lately, the BNB chart has displayed a “cup and handle” pattern, which is frequently followed by an uptick in price. Additionally, analysts have noted a potential resistance level at approximately $700 for BNB. If the current trend continues, this barrier might be broken through.
Based on the latest price movements suggesting a potential recovery, Binance Coin (BNB) is expected to grow even more if its current open interest trend continues. Currently, the BNB price has spiked by 2.6% to reach $583 within the last 24 hours. The trading volume has significantly increased by 46.55%, amounting to a total of $2.26 billion, and BNB’s market capitalization has risen to approximately $84.12 billion at the moment.
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2024-11-06 21:03