Bitcoin has reclaimed the $40.000 USD level and open interest in futures on this cryptocurrency has exploded in a new investor frenzy.
A few days ago, the price of Bitcoin (BTC), the cryptocurrency Bitcoin, the most important cryptocurrency in digital markets, suffered a correction, which led to the massive liquidation of more than $2,7 billion in futures, which further affected its price, falling by almost 30%, and touching the $30.000 USD level per unit again. However, after 3 days of corrections, the value of Bitcoin recovers and is again on the rise, briefly touching the $40.000 USD level and trading at a value of $39.470 USD at the close of this edition.
Source: CoinGecko
With this new value, open interest among investors in Bitcoin futures has been raised again, accumulating more than 13 billion dollars so far this month. Open interest corresponds to the total number of options or futures contracts that have not yet been closed by investors, and which demonstrates the bet of investors, which points to a better position in the price of Bitcoin.
According to data provider Skew, by the 7th of this month, Bitcoin futures volume hit $100 billion for the first time, while by the 11th it exceeded $170 billion.
Although by the time of writing, futures volume has declined considerably from these levels, investor open interest in the exchanges cryptocurrency has accumulated a total of $13,15 billion today.
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Reaching a new all-time high (ATH)
The arrival of Bitcoin futures open interest at $13,15 billion on January 14 marks a new milestone in the history of the cryptocurrency, with an increase of more than 70% compared to the previous month. It is clear that investors are willing to bet on a higher value for the cryptocurrency, trusting in its potential for appreciation in the medium and long term.
Since March of last year, open interest in BTC futures exploded, with the cryptocurrency falling to its lowest levels seen during 2020, and then rapidly recovering shortly after the fall. This was a sign of the healthy development that the cryptocurrency could have in subsequent months, causing a progressive growth in investor interest. Those Bitcoin holders who sold their holdings short, believing that the price would continue to fall due to the COVID-19 pandemic and its serious economic consequences, saw a harsh reality as BTC increased in value, surpassing its 2017 high at the end of December, and doubling that value a couple of weeks later.
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