- As the price of BTC fell, Bitcoin’s open interest increased significantly.
- While long-term holders have begun selling their holdings, interest in ETFs remains high.
Bitcoin [BTC] Despite the price staying in the $63,000 range, open interest has surged significantly over the past few days.
Open interest is increasing
An increase in open interest often indicates that more traders are entering the market using futures contracts. This can increase volatility as these traders place bets on Bitcoin’s future price.
With more money at stake, price fluctuations can be more pronounced as bulls and bears compete for the fight. This volatility can create opportunities for profit, but it also comes with greater risk.
The increase in open interest may also increase liquidity in the Bitcoin market. More open futures contracts creates a larger pool of buyers and sellers, making it easier to enter and exit positions.
This could be beneficial for the overall market health of BTC.
Source:X
ETF story
According to data from Coinglass, the number of short positions made against BTC exceeded long positions. It remains to be seen whether the bears’ cries will turn out to be correct.
Another factor that could impact BTC would be the state of Bitcoin ETFs. According to a report by SoSoValue, the Bitcoin Spot ETF experienced a total of $84,658,100 in net outflows on May 10th.
Grayscale’s GBTC ETF saw net outflows of $103 million per day, while BlackRock’s IBIT ETF saw inflows of $12,436,300 and Fidelity’s FBTC ETF saw inflows of $5,303,900. was there.
Large inflows can have a positive impact on BTC price in the long run.
Long-term holders take a hike
However, at the time of writing, things were looking dire for BTC. Over the past 24 hours, he has fallen by 3.4%, causing the price of BTC to fall to his $60,833.76. BTC trading volume also decreased by 1.8%.
read bitcoin [BTC] Price prediction for 2024-2025
Surprisingly, the long/short difference in BTC has decreased along with the price. This indicates that the number of long-term addresses holding BTC has decreased.
Daily active addresses on the network have also decreased significantly over the past few days, which means that overall interest in the Bitcoin ecosystem is also waning, further negatively impacting BTC price. there is a possibility.
Source: Santiment
