The Bitcoin price skyrocketing to an all-time high of $75,000 has created new record levels for Open Interest (OI), which was $45.41 billion as of November 6, up by 13.29% from the levels seen on November 5, data pulled from CoinGlass show.
Open Interest is a way of measuring how much an actual market is participating by showing the number of new futures and options contracts, known as future or option calls when both sides of traders are buying or selling further contracts, expecting the rate to rise or fall in the future.
This spike in OI comes as Bitcoin surpasses its all-time high price of $73,800 as of March 2024. The increasing OI suggests that players are gearing their portfolios for more mileage in prices as the market continues to outperform.
A combination of high prevalence and growing adoption rates has also seen Bitcoin reach new highs, leading to more short positions getting dangerously close to being liquidated. About $1,260 million is at risk in short positions now, which means that investors who assumed the asset’s price would drop may incur serious losses in the event of sustained upward movement. Today, Bitcoin is at $75,792, while analysts keep a bullish outlook on the asset.
Veteran trader Peter Brandt expressed his confidence in the Rally, saying Bitcoin is right within the bull market halving cycle. Brandt said that he believed that concerning Bitcoin, we might be able to see its value between $130,000 and $150,000, perhaps by August next year or this September. Despite the concerns that Bitcoin’s highs demand a correction, there are claims that it still has space to run.
CryptoQuant, a blockchain analytics firm, disputes this view, saying that Bitcoin is not overbought yet, referring to the so-called Market Value to Realized Value (MVRV) ratio. Today’s MVRV ratio is 2.19, quite different from 2.87 during Bitcoin’s high in March 2024, so the asset has not reached overbought yet.
Another commenter is Rajat Soni, a crypto analyst who pointed to the world’s adoption of Bitcoin’s early phase. As Soni pointed out, “We are at the very beginning of Bitcoin adoption; as you can see, most countries consider their fiat money to be ‘backed’ by something.”
META washes out for the ninth position as Bitcoin gains more market capitalization
This comes after Bitcoin recently touched $50k to become the 9th most valuable asset in the global market capitalization list, displacing Meta Platforms (Facebook). Thus, Bitcoin has taken the number one spot in the market cap, currently at $1.46 trillion, while Meta has a market cap of $1.445 trillion. This is the second time Bitcoin has left Meta behind, the first occasion being in March of 2024 when BTC dominance surged past Meta.
Bitcoin is now among the largest cap stock market products, boasting a market value of $92 billion, ranking it among gold at $18.359 trillion. Tech giants include NVIDIA, Apple, Microsoft, Amazon, and Alphabet (Google). The optimism over Bitcoin can partially explain the increase in the Bitcoin price as a digital reserve currency asset if Donald Trump succeeds in the 2024 US presidential elections.
Yamamoto and Sahani speculate that if Trump wins the next election, Bitcoin could surge even higher in price without going through a correction. Ryan Lee, Chief Analyst at Bitget Research, commented that Bitcoin may continue pushing the market higher based on the next round of institutional investment coming into the space and better regulations.
Through the continuing uptrend, Bitcoin is now gaining attention worldwide regarding its market, indicating its strength as one of the leading assets in its lifetime. With the cryptocurrency trending higher and higher, more analysts expect further, even higher gains in the coming months.
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