Key Points
- Bitcoin futures’ open interest has hit a record high of $39.46 billion, indicating increased investor demand.
- Market indicators suggest a potential price breakout for Bitcoin, with a next major target at $71,500.
The open interest in Bitcoin futures has soared to a new record, signalling a heightened demand from investors for the leading cryptocurrency.
The increase in open interest, along with other market indicators, hint at a potential significant price movement in the near future.
Unprecedented High in Bitcoin Open Interest
Open interest in Bitcoin futures has reached a new high of $39.46 billion, demonstrating a significant surge in investor interest. This surpasses the previous peak of $39.03 billion set on March 29, 2024, according to CoinGlass data.
Open interest represents the total number of outstanding positions in the futures market, and the current figure suggests increased activity and liquidity in Bitcoin. If the momentum continues, a Bitcoin rally could be around the corner.
Potential Breakout in Bitcoin Price
The record open interest, along with other market indicators, points to a potential price breakout for Bitcoin. More than 75% of Bitcoin’s short-term holders were in profit as of July 24, indicating strong retail demand. Bitcoin’s dominance in the cryptocurrency market has also been increasing.
Benjamin Cowen, CEO of Into The CryptoVerse, noted in a July 29 post on X that Bitcoin’s dominance achieved its highest weekly close of this cycle, suggesting Bitcoin could continue to gain market share in the coming months.
Crypto analysts are setting their sights on Bitcoin’s next major target at $71,500, with the possibility of reaching new all-time highs. Analyst Rekt Capital mentioned in a July 27 post that Bitcoin’s price could revisit the range high of around $71,500 soon. Bitcoin is currently trading 5.8% below its all-time high of over $73,750 recorded on March 14.
If Bitcoin continues to trade above the key resistance level of $67,275, it is likely to attract more buyers, potentially pushing the price towards new highs. However, if Bitcoin falls below $67,275 again, sellers might target a drop to the $64,000 level.
Factors Influencing Bitcoin’s Short-Term Price
The price action will depend significantly on the inflows into US-based spot Bitcoin exchange-traded funds (ETFs), which saw $795 million in net inflows last week, marking the fourth consecutive week of positive inflows, according to Dune data.
Upcoming US economic reports, including Job Openings, Consumer Confidence, and the FOMC Policy Decision, will play a crucial role in determining Bitcoin’s short-term price direction.
Trump’s Remarks and Bitcoin
Bitcoin’s recent price increase is also associated with former President Donald Trump’s supportive remarks about cryptocurrency. At the Bitcoin 2024 convention in Nashville, Trump pledged to end what he termed the “persecution” of the crypto industry if he wins the presidential election.
He vowed to make the US a leader in cryptocurrency and establish a national Bitcoin reserve. Following his comments, Bitcoin’s price rose over 3% to $69,745, the highest level since June 12. The anticipation of favorable regulatory changes under Trump’s potential leadership could further strengthen Bitcoin’s rally ahead of the November election.
