Bitcoin Futures See Unprecedented $38B Open Interest
The open interest in Bitcoin futures on centralized exchanges has reached a new peak, hitting $38 billion on Friday, according to CoinGlass. This milestone signifies heightened trading activity around Bitcoin.
Since the beginning of 2024, the daily Bitcoin futures open interest growth has been significant, more than doubling from nearly $17.2 billion on January 1st. This growth aligns with a substantial increase in the price of Bitcoin, which has surged to $70,000, marking a 66% year-to-date increase.
The record open interest in Bitcoin futures reflects increased trader and investor sentiment, as well as heightened market activity around Bitcoin. In March, monthly volume exceeded $2.3 trillion across various exchanges, the highest since May 2021, indicating escalating enthusiasm and involvement in Bitcoin futures trading.
Ether futures have also experienced significant growth, with total outstanding open interest surpassing $13.8 billion, a nearly 90% surge since the beginning of the year. The price of Ether has risen to $3,500, showing a year-to-date gain of over 53%.
The market sentiment has been further bolstered by the launch of Bitcoin spot exchange-traded funds (ETFs) by industry leaders like BlackRock. These spot BTC ETFs have attracted over $12 billion in inflows, positively impacting market dynamics.
Despite challenges such as outflows from Grayscale’s spot BTC ETF, GBTC, and liquidity strains from entities like Gemini and Genesis, the overall outlook remains positive. Traditional finance firms have observed a pause in activities over the long weekend, potentially stabilizing GBTC outflows.
Blockstream CEO Adam Back remains bullish on Bitcoin reaching new heights, highlighting the evolving landscape of the cryptocurrency market. The surge in Bitcoin and Ether futures open interest reflects a growing interest in digital assets and the potential for further market growth.
(Source: CoinGape)
