Bitcoin Open Interest Hits Record High Amid $75,000 Rally, Analysts Bullish on Further Upside

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Ruholamin Haqshanas

Author

Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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Last updated:

November 7, 2024 03:40 EST

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Bitcoin’s meteoric rise to $75,000 has propelled Open Interest (OI) to a record-breaking $45.41 billion, marking a 13.29% surge since November 5, according to CoinGlass.

Open Interest, which tracks the total number of active derivative contracts such as futures and options, reflects growing market activity as traders increasingly open new long and short positions.

The surge in OI coincides with Bitcoin shattering its previous all-time high of $73,800, set in March.

Market Participants Are Anticipating Further Price Gains

The heightened activity suggests market participants are positioning for further price gains.

Analysts note that $1.26 billion in short positions are now at risk of liquidation, indicating traders are betting against a retracement to the earlier high of $73,679.

As of now, Bitcoin is trading at $75,792, according to TradingView, with analysts maintaining a bullish outlook.

Veteran trader Peter Brandt believes the current rally aligns with Bitcoin’s bull market cycle.

“Bitcoin is now in the sweet spot of the bull market halving cycle that should top in the $130k to $150K range next Aug/Sep,” Brandt stated on November 6.

While Bitcoin’s all-time highs often raise concerns about potential overvaluation, some analysts argue that the asset still has room to grow.

CryptoQuant, a blockchain analytics firm, contends that Bitcoin is not “overheated.”

Its Market Value to Realized Value (MVRV) ratio—an indicator used to assess whether an asset is overbought—remains far from peak levels.

Currently, Bitcoin’s MVRV is at 2.19, compared to 2.87 during its March high.

Crypto analyst Rajat Soni also weighed in, emphasizing Bitcoin’s early stage in global adoption.

“We are so early in Bitcoin’s adoption that you can still exchange pieces of paper ($, €, £, etc.) for BTC because most of the world thinks fiat currencies are backed by something tangible,” he remarked.

Bitcoin has climbed to the 9th position in global market capitalization rankings, surpassing Meta Platforms (Facebook) amid a rally driven by optimism surrounding Donald Trump’s win in the 2024 presidential elections.

With a market cap of $1.46 trillion and a price of $73,800 per Bitcoin, the cryptocurrency has edged out Meta, which holds a market cap of $1.445 trillion.

Notably, this is not the first Bitcoin has overtaken Meta. Back in March, the leading cryptocurrency also surpassed the company after it hit a new record high above $73,000.

The list of top assets by market cap includes major technology giants and precious metals, with Gold leading at $18.359 trillion, followed by NVIDIA at $3.431 trillion, and Apple at $3.377 trillion.

Other leading companies include Microsoft, Amazon, and Alphabet (Google).

“The market seems to have reacted in advance to Trump’s earlier hints about potentially designating BTC as a strategic reserve asset,” Ryan Lee, Chief Analyst at Bitget Research, said in a comment.

“If Trump were to win, BTC could continue driving the market higher without major pullbacks, potentially reaching even greater highs.”