It has been a memorable week for Bitcoin as the top cryptocurrency has made giant strides in price. It rose to the major $10,000 mark which is considered to be a significant price level. It seems its price isn’t the only thing that’s making such progress as the number of Bitcoin Futures open interest has just soared above $5 billion.
According to research and market analysis firm Crypto Rank, this is the highest that has been recorded since the middle of January this year. The firm collected data for 9 exchanges which show that BitMex has had the highest number of open interest for Bitcoin futures since then. The data also shows that the open interest has been on a nearly consistent increase to reach the highest in the year today.
According to Wikipedia, Open Interest is the number of contracts or commitments outstanding in futures and options trading on an official exchange at any one time. An increasing open interest suggests that more money is flowing into the futures or options market at any given time.
Coincidentally, Bitcoin’s price has also displayed a similar pattern of increase since the year started, although its year-to-date high wasn’t attained today. As the rising open interest indicates an increasing flow of money into the market, it’s hardly surprising that the price is also increasing at this time.
As more money continues to flow into the market, Bitcoin may still have a brighter year ahead, especially as the halving is coming in May which is also expected to increase the price of the asset.
The price is still on the rise at the time of reporting, albeit slowly. Analysts believe there will be a continuing rise until around $11,000. However, they maintain that the sentiment is still bullish generally.