Originally published on: October 21, 2024
The Bitcoin derivatives market soared to new heights on Oct. 21, with BTC inching closer to the $70,000 mark, resulting in an all-time high of open interest.
According to CoinGlass, open interest in Bitcoin futures contracts surged to a staggering $40.5 billion, signaling a substantial amount of money flowing into Bitcoin derivatives. This surge in open interest suggests increased leverage and potential volatility in the market.
The Chicago Mercantile Exchange (CME) dominated the market share, accounting for 30.7% of the open interest, followed by Binance with 20.4% and Bybit with 15%.
High levels of open interest often lead to cascading liquidations in times of sharp price movements, causing significant market fluctuations. A recent example of this was in early August when Bitcoin prices plummeted nearly 20% in less than two days, dropping below $50,000.
Despite briefly reaching $69,380 on Oct. 21, Bitcoin faced resistance and retraced to $69,033. Still, the cryptocurrency is only 6.4% away from its all-time high of $73,738, as per CoinGecko data.
On Oct. 20, Cointelegraph highlighted that a potential rally above $70,000 could drive altcoins like Ether and Solana to new highs. Both assets have outperformed Bitcoin in daily gains, with Ethereum reaching $2,750 and Solana nearing $170 before consolidating.
As Bitcoin continues to make waves in the market, investors and traders are closely monitoring its price movements and the impact on other cryptocurrencies. Stay tuned for more updates on the evolving cryptocurrency landscape.