Open interest (OI) for Bitcoin futures and perpetual pairs on centralized exchanges (CEX) has reached an all-time high following BTC's unwavering rally to levels not seen since November 2021.
According to the latest Bitfinex Weekly reportOI for Bitcoin futures and perpetual pairs reached $26 billion, surpassing the previous record of $24 billion set in Q4 2021. The rise signals growing investor confidence in a pre-market rally. halving pushing BTC price to and beyond its 2021 ATH of $69,000.
Bitcoin Open Interest Increases
Open interest for Bitcoin futures and perpetual pairs represents the cumulative value of all unsettled Bitcoin futures contracts. The metric serves as an indicator of market sentiment and investor engagement towards BTC.
Bitfinex cited an analysis from crypto futures market data platform Coinalyze, which found that the total Bitcoin OI on several decentralized exchanges (DEXs) also reached $41.8 billion last week. Analysts have noted the increase in OI in CEX and DEX since January 2024, establishing that it correlates with the rise in BTC price.
Bitcoin's 44% rise in February and its latest surge to a new all-time high was driven primarily by inflows into spot BTC exchange-traded funds (ETFs). Less than two months after launch, the ETFs have acquired over 146,522 BTC worth over $7.5 billion, far surpassing all predictions.
Average expectations for ETF inflows for the first year were $28 billion; however, the growth recorded to date has delivered products significantly ahead of schedule. With billions of dollars of capital yet to be invested in the ETF space by management advisors like Morgan Stanley, Wells Fargo and Bank of America, the sector still has vast untapped growth potential.
Altcoin season picks up pace
On the other hand, altcoins continued to gain ground, showing signs of an impending alt season, which is a period where crypto assets, with the exception of BTC, experience a significant influx of capital and an increase speculation in the market.
Bitfinex believes the crypto market could be at the start of an altcoin season, as seen by the 50% rise in TOTAL3, an index for all cryptocurrencies except BTC and ether . The index's market capitalization increased significantly from its bear market record of $450 billion to $640 billion.
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