Bitcoin Futures Open Interest Surges Nearly 10% as BTC Targets $110K
Bitcoin’s futures market experienced a significant surge in open interest, indicating growing investor activity, as the leading cryptocurrency approached the $110,000 price level. Data from Velo revealed that open interest in bitcoin perpetual futures on international exchanges jumped by almost 10%, reaching $26.91 billion in a single day. This spike, the most substantial in four months, signals heightened market participation and interest in BTC derivatives.
The tracked data encompassed perpetual contracts denominated in USD and USDT from major platforms like Binance, Bybit, OKX, Deribit, and Hyperliquid. Open interest reflects the total value of active futures contracts, showcasing market sentiment and trader engagement. When coupled with a price surge, increasing open interest typically confirms an ongoing uptrend in the market.
Bitcoin’s price saw a notable upswing of over 3.5%, reaching $109,600, driven by several market catalysts. These factors included the discouraging U.S. ADP jobs report, which heightened expectations of Federal Reserve rate cuts, along with developments such as Trump’s trade negotiations with Vietnam and the launch of the REX-Osprey Solana + Staking ETF (SSK).
Moreover, the perpetual funding rates for Bitcoin and Ethereum saw a modest uptick from 5% to over 7% on an annualized basis, indicating a resurgence in demand for leveraged long positions. Concurrently, funding rates for other cryptocurrencies like Dogecoin (DOGE) and Cardano (ADA) surpassed the 10% threshold, reflecting a strong appetite for leveraged bullish strategies.
The rally in Bitcoin’s price triggered approximately $300 million in liquidations, primarily affecting leveraged short positions due to margin calls. Coinglass reported that a total of 107,604 traders were liquidated within a 24-hour period, with the largest single liquidation order exceeding $2.32 million and occurring on the Hyperliquid platform.
This surge in open interest and trading activity underscores the dynamic nature of the cryptocurrency derivatives market, highlighting the increasing sophistication and participation of traders in these financial instruments.
According to Sam Boolman, ChainIntel’s lead analyst: “The substantial increase in Bitcoin futures open interest signifies a growing interest in derivative products tied to the cryptocurrency. This surge, coupled with the price rally and funding rate movements, suggests a nuanced market sentiment with a mix of leveraged plays and hedging strategies, reflecting the evolving landscape of crypto trading.”
Sources: CoinDesk
