Open Interest in Bitcoin Futures Reaches ATH, Surpasses 2021 Bull Run Levels
The price of Bitcoin has seen a significant increase over the past month, rising by +34.5% and trading at a price of US$58,470 (28/2/24). This upward trend has led to open interest in Bitcoin futures reaching its highest level since the 2021 bull run.
The Bitcoin derivatives market has witnessed a significant increase in both open interest and overall volume in Bitcoin futures since mid-October 2023. Open interest (OI) in the derivatives market is defined as the total number of outstanding or active derivative contracts.
Essentially, OI serves as an indicator of capital inflow into the Bitcoin derivatives market. As of the writing of this article (28/2/24), the OI figure for Bitcoin futures has reached an all-time high (ATH) of US$24.57 billion.
The latest ATH surpasses the previously recorded OI when BTC reached US$69,000 in November 2021, which was US$23.06 billion. This OI also exceeds that reached on April 13, 2021, which was US$24.27 billion or US$300 million lower.
Measuring OI in Bitcoin futures can provide insights into trader sentiment. Generally, when OI increases, market trends tend to be bullish. Conversely, when OI decreases, market trends tend to lean towards bearish sentiment. This is reflected in the bullish trend of Bitcoin prices since the beginning of 2024, with BTC recording a +38.4% year-to-date (YTD) increase.
CME Leads in Open Interest Value
CME Group leads the Bitcoin derivatives market in terms of OI with US$7.77 billion, accounting for 31.79% of the market share. Binance follows in second place with US$6.13 billion, and Bybit occupies third place with US$4.10 billion.
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*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.
