Despite the recent drop in Bitcoin price, the open interest in the cryptocurrency has remained close to its all-time high. This suggests that investors are still optimistic about Bitcoin and are actively investing in it. The open interest measures all futures and options contracts for an asset open in the market, so a high open interest indicates that traders are taking positions. Currently, the Bitcoin open interest stands at $33.84 billion, only around a 10% decrease from its peak of $36.87 billion earlier this month.
The recent Bitcoin price crash has led to over $110 million in liquidations, with approximately 44,000 traders being liquidated in the last 24 hours. BTC has seen the highest amount of liquidation at over $30 million, followed closely by Ethereum at $22.65 million. Other tokens such as Solana, PEPE, and Notcoin have also experienced significant liquidations. The data shows that short sellers have suffered more liquidations, with 50.93% being short positions. However, as the price begins to recover, shorters are losing more at a rate of 71.29% in the last hour.
The largest liquidation order was seen on the BTCUSD pair on the Bybit exchange, where a trader was liquidated for $8.09 million. The majority of liquidations have occurred within the last 24 hours, with approximately $80 million lost in that time frame. Despite the liquidations, the Bitcoin open interest remaining high indicates that investors are not deterred by the price crash and are still actively trading the cryptocurrency.
It is interesting to note that even as the Bitcoin price drops, the open interest remains strong, indicating a bullish sentiment among investors. The fact that the open interest is close to its all-time high suggests that traders are still confident in Bitcoin’s long-term potential. Although the recent liquidations have caused losses of over $110 million, the balance between short and long positions indicates that both sides are active in the market.
Overall, the resilience of Bitcoin’s open interest in the face of price fluctuations and liquidations showcases the growing interest and confidence in the cryptocurrency. Despite the challenges in the market, investors are still actively trading and taking positions, which could signal a positive outlook for Bitcoin in the near future. As the price recovers and traders adapt to the changing market conditions, the Bitcoin open interest will be a key indicator to watch for future trends in the cryptocurrency market.
