Key Points
- Bitcoin’s futures open interest on centralized exchanges has reached an all-time high, indicating a bullish market.
- Bitcoin’s exchange reserve has dropped to its lowest level since 2018, suggesting decreased selling pressure.
Bitcoin’s futures open interest, which is the total value of outstanding futures contracts that have not been settled or closed by market participants, has reached a record high on centralized exchanges. This data comes from Coinglass.
When open interest increases, it implies that new money is being injected into the market. This could mean traders are either opening new positions or maintaining existing ones, often seen as a bullish sign.
Bitcoin’s Futures Open Interest and Exchange Reserve
As of now, the futures open interest for Bitcoin (BTC) is $27.09 billion, a 17% increase over the last week. This increase coincides with Bitcoin’s recent price surge above the $63,000 mark, a level not seen since 2021.
The current futures open interest for BTC has surpassed the levels seen in November 2021 when the cryptocurrency traded at an all-time high of over $68,000. Despite this, the funding rate across exchanges remains positive, suggesting a higher demand for long positions compared to short ones.
Drop in Selling Pressure
In addition to the rise in futures open interest, there has been a noticeable decline in the exchange reserve for Bitcoin. Data from CryptoQuant shows that the BTC exchange reserve is currently at its lowest level since the start of the year.
At present, the exchange reserve for BTC stands at 2.01 billion BTC. The last time the number of coins held across exchanges was this low was in December 2018. A decline in the exchange reserve indicates a decrease in selling pressure, meaning investors are more interested in holding their coins for future gains rather than selling them for immediate profit.
