Bitcoin Price Climbs Above $85,000 As Open Interest Surges 16% In Past Day
The Bitcoin price action this weekend has been quite bubbly and impressive, with the premier cryptocurrency reclaiming the $85,000 level on Saturday, April 12. This burst of bullish momentum came after United States President Donald Trumps exemption of smartphones, computers, and chips from the new trade tariffs.
According to the latest on-chain data, the Bitcoin open interest (OI) has also enjoyed a similar level of resurgence in the past day. The Bitcoin price could be gearing up for an extended upward run, especially with the open interest metric on the rise.
How The Latest Spike In Open Interest Could Affect The Market
In a Quicktake post on the CryptoQuant platform, analyst Burak Kesmeci revealed that the Bitcoin open interest has seen a notable upswing in the past 24 hours on the worlds largest exchange by trading volume, Binance. The open interest metric measures the total amount of capital flowing into BTC derivatives at a given time.
An increase in the open interest usually indicates that Bitcoin traders are taking up new positions in the futures and options market. On the other hand, when the OI metric is declining, it means that BTC investors are exiting the derivatives market or their positions are getting liquidated.
Data from CryptoQuant shows that Bitcoins open interest on Binance has increased by a strong 15.8% in the past 24 hours. This surge saw about $1.2 billion flow into derivatives in a single day, growing the OI on the worlds largest exchange from $7.6 billion to $8.8 billion.
Kesmeci highlighted that this rapid rise in Bitcoins open interest suggests a substantial build-up of leverage positions within a short period. The Quicktake analyst noted that Binance now accounts for 31.4% of the market, with a total futures OI of around $28 billion.
Kesmeci added:
Binance isnt just reflecting the market trend its actively leading it.
The analyst also revealed that such a significant spike in open interest signals heightened activity and increased market volatility, which could lead to sharp liquidations of both long and short positions. Hence, investors might want to exercise caution when opening short-term positions.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $85,240, reflecting a 2.5% increase in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is up by over 2% on the weekly timeframe.
Read more: https://www.newsbtc.com/news/bitcoin/bitcoin-price-climbs-85000-as-open-interest-surges/
Text source: NewsBTC
