Bitcoin Price: Why BTC Price Will Hit $3.8 million in 2030

Business

Bitcoin Futures See Unprecedented $38B Open Interest – Crypto News

Published

2 years ago

March 30, 2024

Dripp

The open interest in Bitcoin futures on centralized exchanges has reached a new peak. According to CoinGlass, the figure hit $38 billion on Friday. This represents a significant milestone, indicating heightened trading activity around Bitcoin.

Bitcoin Futures Open Interest Skyrockets in 2024

Since the beginning of 2024, the daily Bitcoin futures open interest growth has been significant. Open interest has increased more than two times, rising from nearly $17.2 billion on January 1st of this year. The development is parallel to a huge increase in Bitcoin price that increased to $70,000, which is a 66% growth year-to-date. The record of open interest reflects the increased trader and investor sentiment and market activity around Bitcoin.

Open interest, quantifying the total value of outstanding Bitcoin futures contracts, reflects the market’s vibrancy. March saw a monthly volume exceeding $2.3 trillion across various exchanges, the highest since May 2021. Such figures point to an escalating enthusiasm and involvement in Bitcoin futures trading.

Ether Futures Hit $13.8 Billion Amid Rally

Close on its heels, Ether futures also enjoyed significant growth. Their total outstanding open interest hit more than $13.8 billion, a surge of nearly 90% since the start of the year. Meanwhile, the price of Ether went up to $3,500, displaying a year-to-date gain of more than 53%.

The market mood has been boosted even more place by the launching of Bitcoin spot exchange-traded funds (ETFs) by industry leaders such as BlackRock. More than $12 billion in inflows have been poured into these spot BTC ETFs, which have had a positive effect on market dynamics.

Adam Back, Blockstream CEO, sounded bullish on Bitcoin reaching new heights. Yet, there are some challenges in the market. For example, Grayscale’s spot BTC ETF, GBTC, suffered large outflows, pointing to liquidity strains from stressed entities such as Gemini and Genesis.

These outflows, partly due to liquidations by bankrupt firms, underline the market’s complexities. Despite these challenges, the outlook remains positive, with traditional finance firms observing a pause in activities over the long weekend, potentially stabilizing GBTC outflows.