Open interest in bitcoin (BTC) reaches an all-time high (ATH) of $61 billion, as the digital currency’s price moves ever closer to the $100,000 threshold.
It is about an important metric in the digital asset marketwhich provides valuable information such as market sentiment, trading activity and liquidity.
According to data from explorer Coinglass, the Chicago Mercantile Exchange (CME) handles the majority of open interest in BTC contracts at 32.63%. One step below are the cryptocurrency exchanges Binance (19.17%) and then Bybit (14.03%).
Open interest is the total number of BTC futures or options contracts in circulation in the market. Every time the indicator rises it is a sign of bullish enthusiasm among investors
This is because open interest grows when the number of new contracts, whether long positions (upward price bets) or short positions (downward price bets), exceeds that of closed contracts. This increase indicates increased activity in the marketwhich can lead to an increase in liquidity and trading volume.
It should be noted that Options are contracts that give the buyer the right to buy or sell an assetin this case BTC, at a certain date and price. This way they have the flexibility to choose whether or not to execute the transaction.
Futures contracts, meanwhile, allow speculation on the price but are required to comply with the operation, it can be a purchase or sale, on the set date and regardless of the market conditions at that time.
Bitcoin is approaching $100,000
As NoticiasVE already reported, BTC recorded a new ATH of $94,440 and is getting closer to the goal of $100,000.
The rise was mainly driven by the successful debut of options on the iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF). Interest in bitcoin from institutional investors increases liquidity and, furthermore, reinforces bullish expectations.
Specifically, options on the ETF allow you to manage risk and speculate with greater precision on the future price of the currency created by Satoshi Nakamoto.
For financial analyst Joe Consorti, meanwhile, the increase in institutional participation generates additional demand for the BlackRock ETF, generating a contagion effect that favors the digital currency. Furthermore, he explained:
“Derivatives, like options, are the foundation of capital markets, providing liquidity, price discovery and risk management tools for participants, especially institutional players who represent the core of the market.”
Joe Consorti, cryptocurrency market analyst.
Finally, he explains that, for him, BTC “is in the first stage of its monetization process” and added: “The financial future of bitcoin is just beginning.”