Key Points
- Bitcoin’s open interest across all exchanges has reached a record-breaking $20 billion.
- Whales are accumulating Bitcoin, with net outflows from exchanges surging over the past 7 days.
Record-Breaking Open Interest in Bitcoin
Bitcoin’s open interest across all exchanges has reached a record $20 billion, as reported by Ki Young Ju, CEO of CryptoQuant. This surge in open interest is happening while Bitcoin is just 8% below its previous all-time high (ATH), indicating a potential major price movement.
The growing participation in futures markets shows a rising interest in Bitcoin, especially among institutional investors. CME Bitcoin Futures open interest has also hit an all-time high, suggesting that traders are preparing for increased market activity.
Bitcoin Open Interest and Price Relationship
The correlation between Bitcoin’s price and open interest has been historically strong, particularly during bull runs. During the previous rally from mid-2020 to late 2021, open interest and price moved upward together, driven by increased speculation and leveraged trading.
Open interest peaked alongside Bitcoin’s ATH in late 2021, reflecting traders’ confidence in the rising market. However, during the bear market of 2022, both open interest and price dropped significantly. As Bitcoin recovered from its lows, open interest began to climb again, reaching new highs in 2024.
Whale Accumulation and Network Activity
Data shows that large Bitcoin holders have been consistently moving their holdings off exchanges, indicating accumulation. Over the past seven days, there has been a significant change in netflows to exchanges, suggesting that whales are preparing to hold their Bitcoin for the long term.
On-chain metrics also reflect the growing interest. New addresses have increased by 9.59%, and active addresses are up by 8.20% over the past week. This increase in network activity, along with Bitcoin’s rising price, suggests growing user engagement.
Whale Transactions and Short-Term Price Outlook
Whale activity has been notable in the past 24 hours, with a large number of transactions recorded. While slightly below the 7-day high, the current volume is well above the recent low.
This steady flow of large transactions indicates that whales are actively trading, which could contribute to potential price movements in the coming days. As BTC approaches its ATH, the combination of rising futures open interest, whale accumulation, and increased network activity points to the possibility of a significant price move.