As a seasoned crypto investor with several years of experience under my belt, I find the recent trend in Bitcoin’s open interest particularly intriguing. While the price has taken a hit and dropped below $66,000, the open interest has remained surprisingly stable, only falling around 10% from its all-time high.
As a researcher studying the crypto market, I’ve noticed an intriguing development: the Bitcoin open interest hasn’t waned even as its price has taken a hit. This observation implies that amidst the recent price downturn, investors remain bullish towards Bitcoin.
Bitcoin Open Interest Stays Close To All-Time High
Over the past week, the Bitcoin price has dropped significantly from around $70,000 to under $66,000. Typically, a price decline of this magnitude would lead to increased open interest in the cryptocurrency market. However, contrary to expectation, data from Coinglass indicates that this has not been the case.
As a researcher studying market trends, I’ve noticed that the Bitcoin open interest has managed to maintain its value quite robustly, remaining relatively close to its all-time high despite some expected declines. To provide some perspective, the Bitcoin open interest reached an unprecedented peak of $36.87 billion earlier this month on June 6th. Currently, the Bitcoin open interest stands at $33.84 billion.
In the past fortnight, the open interest for Bitcoin has decreased by approximately 10%, resulting in a loss of roughly $3 billion. Despite this reduction, it indicates that there is significant ongoing investment in Bitcoin as traders continue to establish new positions.
As a crypto investor, I closely monitor the Bitcoin open interest because it reflects the number of outstanding futures and options contracts for Bitcoin that are currently open in the market. A lower open interest indicates that traders aren’t taking as many positions, possibly due to reduced market sentiment or uncertainty. Conversely, when the open interest is near its all-time high, it suggests strong market participation and potentially increased volatility, which could lead to potential trading opportunities.
BTC Crash Drives Liquidations above $110 Million
In the aftermath of Bitcoin’s price plunge, around 44,000 traders have experienced their positions being closed forcibly based on Coinglass’ statistics. The monetary value of these liquidations amounts to approximately $111 million.
In the past 24 hours, BTC has taken the front seat in liquidation events with a significant amount of around $30 million. Ethereum follows closely behind with approximately $22.65 million in liquidated positions. Other notable coins include Solana with $6.34 million, PEPE with $3.76 million, and Notcoin with $2.92 million.
The data reveals an almost equal distribution between long and short positions, with 50.93% representing the former. Nevertheless, as the market price starts to rebound, short sellers have experienced heavier losses, amounting to 71.29% within the past hour.
As a researcher studying the cryptocurrency market, I’ve found that the most substantial liquidation order took place on the Bybit exchange within the BTCUSD pair, resulting in a trader being forced to sell their position for approximately $8.09 million. Furthermore, it’s important to note that the majority of these liquidations occurred within the past 24 hours, leading to a total loss of around $80 million.
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2024-06-21 00:11