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Bitcoin futures open interest has reached an all-time high.

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Open Interest for bItcoin fThe future value of centralized exchanges has reached an all-time high, according to Coinglass data.

The surge in open interest surpassed levels reached in November 2021, when Bitcoin surpassed its all-time high of $68,000. It also highlights the increase in trading activity for the largest cryptocurrencies.

Total open interest in Bitcoin futures surpassed $26 billion on Friday, which is higher than in the fourth quarter of 2021, when open interest peaked at $24 billion, according to CoinGlass.

Open interest in Bitcoin futures has been increasing since early 2024, and the digital asset’s price rise has recently surpassed $64,000, which it reached earlier this week.

Open interest, which measures the total value of all Bitcoin futures contracts outstanding across exchanges, is an indicator of increased market activity and trader sentiment for a specific asset.

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Futures open interest hit an all-time high on Friday, March 1st. Image: Coinglass.

This surge in open interest is corroborated by The Block’s data dashboard, which shows that Bitcoin futures open interest on exchanges such as Binance, OKX, Deribit, etc. has reached a peak of $21 billion.

Increased retail-focused activity

Retail-focused exchanges like Binance were leading the price action last week with Bitcoin perpetual futures trading at a premium of $70 to $80 over spot prices, according to a QCP Capital Markets update on Friday. “Bitcoin’s recent rise above $64,000 was driven by a frenzy of speculative retail buying,” the report added.

According to Coinbase’s weekly market report, the open interest weighted average funding ratio reached 109% year-to-date as of February 28, a level not seen since April 2021. Glassnode. “Almost $750 million in short selling was liquidated between February 25 and 28. The amount of short selling liquidated each day is the highest it has been since the beginning of the year. Meanwhile, we believe we are approaching the final phase of short selling. .The long-short ratio in futures is not quite over yet,” Coinbase analysts added.

The Coinbase report also noted that recent positive movements in funding rates and open interest could have consequences if position liquidation triggers a series of long-term liquidations. “However, as spot ETFs continue to be incorporated into asset management companies and net inflows absorb circulating supply of liquids at a faster rate than Bitcoin miners produce, we are cautious about our outlook for the coming months,” Coinbase analysts said. “Overall, it remains constructive,” he added.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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