Bitcoin recently marked a recovery above $64K. The digital asset did not linger in the price range for long but it is nonetheless an important milestone for the asset. One month of gains has seemingly erased the past couple of months of a slow market. Investors who had watched the values of their portfolios crash are now back in the green as 99% of BTC is said to be in profit.
Arcane Research reported that in the month of October, Bitcoin is up 29%. This put the digital asset on a course towards a new all-time high. Bitcoin has however not been able to break above its April high of $64,863 despite needing only a 1% bump from its October high to break this point. Nonetheless, the bull rally continues and with open interest growing, this might just be the push the asset’s needs to break this point.
Bitcoin Open Interest On The Rise
Bitcoin has seen a marked increase in open interest in the month of October. Mirroring the growth of the asset in the month, open interest has grown 23% in the month of October alone. This represents the fastest 18-day increase in global open interest and a 7-month high. Bitcoin has led the global open interest as it has recorded the most growth in this regard.
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The previous week saw the global open interest denominated in bitcoin sitting at 350,000 BTC. This week though, that number has climbed to 370,000, returning to levels witnessed in April during the height of the last bull market.
Bitcoin Futures Contracts on CME have been the biggest push behind the open interest growth. This, too, has reached a new record as the amount held in Futures Contracts now total approximately $4 billion.
BTC open interest on the rise | Source: Arcane Research
Binance has also seen open interest set new records on the platform. The trading exchange now has $5.3 billion in bitcoin-denominated open interest, marking a new all-time high on Binance.
What This Could Mean
The return of open interest usually spells good news for the market. Then again, this could be just another metric that ends up not affecting the value of bitcoin in any significant way. Open interest means that investors are back putting money in an asset, which has been a driver of value for the digital asset in the past and could very well cause the same movement in the asset again.
BTC price chasing a new all-time high | Source: BTCUSD on TradingView.com
However, it is important to note that open interest can rise and fall as it follows the creation of futures contracts. These contracts can be created in both bull and bear markets, leading to an increase in open interest but not necessarily an increase in price.
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Nevertheless, it is never bad to have more money coming into the market. The last time open interest surged past 400,000 BTC, bitcoin rallied to new all-time highs.
Featured image from Mint, chart from TradingView.com