Amidst the frustration of traders and investors due to the price stagnation, there has been a noticeable increase in the open interest for Bitcoin’s futures contracts, likely driven by heightened demand from institutional traders. Despite the lackluster derivatives markets, Bitcoin Futures Contracts Open Interest reached new high on Bybit, with potential implications for the market’s sentiment, as per Glassnode.
Previous 16-month high of $2,815,891,040.41 was observed on 14 August 2023
— glassnode alerts (@glassnodealerts) August 16, 2023
A Surge in Bitcoin Futures Open Interest
Data from Glassnode shows a significant increase in the open interest of Bitcoin futures contracts, reaching a 16-month high of $2,816,492,332.03 on Bybit, surpassing the previous high of $2,815,891,040.41 just two days earlier.
BTC Futures Contracts Open Interest on Bybit, Source: Glassnode
As per Coinglass, a cryptocurrency futures trading & information platform, Bybit now ranks second in total BTC futures open interest with 96.60K BTC, only trailing behind Binance, which has 154.40K BTC.
Open interest represents the number of futures contracts market participants hold at the end of the trading day. It is calculated by adding all contracts from opened trades and subtracting them from closed trades, an indicator to gauge market sentiment and the strength of price trends.
Mixed Sentiment Among Traders
Despite the uptick in open interest, Bitcoin traders remain frustrated with the cryptocurrency’s price trends, specifically the inability to break past the $30,500 mark over the past month. This sentiment has been exacerbated by the ongoing delays and pending reviews of several spot Bitcoin exchange-traded funds (ETFs) by regulators.
Bitcoin’s price is currently $29,024.97, with a market cap of $564,802,228,909 and a 24-hour trading volume of $14,098,065,712. It has a circulating supply of 19,459,181 BTC coins, with a maximum supply of 21,000,000 BTC coins. The present market conditions suggest a lack of momentum for trading at or above the $31,000 level, which has left investors with mixed feelings.
BTC/USD price chart, Source: CoinMarketCap
Analysts have noted bearish trends on the price charts, which have left investors pessimistic. The price action is forming a pattern favorable for sellers, as it is topping out and consolidating near trendline support. If the BTC price breaches this support and trades below this zone, sellers may gain control and potentially drive the price below the $20,000 mark, as indicated by the formation of a double-top pattern.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.