As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and volatility. However, the current surge in Bitcoin (BTC) and the related derivatives on Binance is truly unprecedented.
With the U.S. presidential election outcomes propelling Bitcoin (BTC) to new record highs, the open interest on derivative trading platforms also increases. This trend might result in heightened volatility, potentially triggering a significant $370 million worth of short positions to be closed by crypto skeptics.
Binance‘s OI hits new ATH, analyst foresees volatility spike
On its crypto derivatives platform, Binance, the globe’s leading cryptocurrency exchange, reached an unprecedented peak in open interest. As reported by Burak Kesmeci, a knowledgeable blockchain analyst and member of the CryptoQuant community, Binance’s net Open Interest (OI) soared to an impressive new high of $8.3 billion.
The combined Open Interest (OI) on all exchanges has reached an all-time high of $23.3 billion, with Binance representing approximately 35% of this total, or around $8.3 billion in futures positions.
— CryptoQuant.com (@cryptoquant_com) November 6, 2024
Over the last 24 hours, there was a significant increase of 10.24% in Open Interest on Binance. Currently, this platform accounts for approximately 35% of the worldwide Open Interest in cryptocurrency futures.
Kesmeci points out that any shift exceeding 3% within a 24-hour period appears substantial to him. Consequently, it’s reasonable to anticipate increased market fluctuations in the cryptocurrency sector.
On significant futures trading platforms, the total open interest figure peaked at a record-breaking $23.3 billion. This increase can largely be linked to the recent all-time high in Bitcoin’s (BTC) value.
The orange coin’s price jumped to $75,341 today in the early morning hours.
$580 million liquidations in worst day for bears in crypto
The outcome of the U.S. presidential election brought unprecedented optimism to the cryptocurrency market, making it the toughest challenge yet for those who bet against cryptocurrencies (cryptocurrency bears).
Over $370 million worth of short positions, spread across various currencies and trading platforms, were eliminated due to liquidations, with the total liquidation volume surpassing a staggering $580 million.
Concurrently, markets exhibit a sense of caution: for the past three consecutive days, the Fear and Greed Index has stayed at 70 out of 100. Despite a substantial 6.86% rise in the crypto market capitalization, it hasn’t managed to re-enter the “Extreme Greed” zone yet.
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2024-11-06 19:06