Bitcoin Futures Overheat With $1.5 Billion Jump As BTC Breaks $44k

Keshav Verma

1 year ago

3 mins read

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On-chain data shows Bitcoin futures open interest has jumped up more than $1.5 billion in just a few hours as the crypto’s price breaks past $44k again.

Bitcoin Futures Open Interest Adds More Than $1.5 Billion Within A Few Hours

As pointed out by an analyst in a CryptoQuant post, the BTC open interest has shot up over the past day as the coin’s price has observed a surge.

The “open interest” is an indicator that measures the total amount of Bitcoin futures contracts currently open on all derivatives exchanges.

When the value of this metric is rising, it means more futures positions are opening up on exchanges. This leads to higher leverage in the market, and can result in more volatility.

On the other hand, the open interest’s value going down suggests investors are closing up their positions as they pull out of the market. As leverage lowers during this trend, it can lead to lesser volatility in the price of Bitcoin.

Now, here is a chart that shows the trend in the Bitcoin open interest over the past month:

Looks like the value of the indicator has surged up over the past day | Source: CryptoQuant

As you can see in the above graph, the BTC open interest observed a sharp rise within the last 24 hours as the coin’s price enjoyed an uptrend.

The value of the metric jumped more than $1.5 billion in just the matter of a few hours, taking the total open interest to $13.6 billion.

Also, as the chart shows, there were two similar sharp spikes twice within the past thirty days where the price also saw an increase.

However, not long after this trend, the price plummeted down along with the open interest. If similar trend follows this time as well, the current uplifted value of the coin may not last long before a retrace is seen.

Though, there is a chance that things go differently this time. The increase in the Bitcoin open interest is much sharper than the other instances.

BTC Price

Yesterday, Bitcoin’s price broke past $44k for the first time since start of March. So far, the coin has maintained above this level as at the time of writing, it floats around $44.6k, up 10% in the last seven days.

Over the past month, the crypto has gained 15% in value. The below chart shows the trend in the price of the coin over the last five days.

The price of BTC seems to have observed some sharp uptrend over the last few days | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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