The total value of Bitcoin (BTC) open interest in US dollar-denominated exchanges has climbed to $22.84 billion, according to data from on-chain analytics platform Coinglass.
For the uninitiated, Bitcoin open interest refers to the total number of outstanding Bitcoin futures and options contracts that have not been settled. In simpler terms, it represents the total amount of money wagered on the future price of Bitcoin through these derivative contracts.
While a rising open interest generally indicates an increasing bullish sentiment among traders, a falling open interest suggests a growing bearish sentiment.
Bitcoin Open Interest Surges Towards Bull Market Records
Interestingly, Bitcoin’s open interest rise to $22.84 billion is just within striking distance of its all-time high of $23.055 billion, set during the previous Bitcoin bull market on November 9, 2021.
The Coinglass data shows several exchanges holding significant portions of Bitcoin open interest. Leading the charge is CME, with $6.77 billion in open interest. Binance follows closely with $6 billion. Bybit is third on the list with $4 billion open interest.
Other exchanges on the list include OKX ($2.40 billion), Bitget ($1.45 billion), BingX ($1.32 billion), Deribit ($1.24 billion), Bitfinex ($315.27 million), Bitmex ($283.99 million), Kraken ($164.70 million), Huobi ($132.38 million), dYdX ($96.81 million), CoinEx ($14.94 million), and Coinbase ($2.79 million).
Bitcoin Rally
Meanwhile, the surge in open interest coincides with the rally in the price of the BTC. Just yesterday, the flagship cryptocurrency reclaimed its $1 trillion market capitalization as its price crossed $51,000 – a level last achieved in late 2021.
BTC rally has been on the back of impressive inflows from spot Bitcoin exchange-traded funds (ETFs) of around $500 to $650 million daily.
Analysts forecast that on the back of these inflows, BTC could break its all-time high of $69,000 by the end of March 2024.
BTC traded at $51,989 at press time, representing a 4.3% surge in the past 24 hours.
