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Bitcoin reaches a record level of open interests. While its price flirts with $ 107,000, perhaps massive disposal of short positions could move BTC to a new historical summit. Details below!
In short
- A record -breaking open interest rate of $ 72 billion per bitcoins increases the risk of mass disposal.
- American debt is pushing investors to transfer gold reserves to bitcoins.
Open interest in Bitcoin: Record lever and immediate liquidation
Today’s cryptocurrency market seems to be marked and An explosion of open interest in bitcoin term contracts. Specifically, he achieved a historical record of $ 72 billion. This represents an increase of 8 % in just a week.
For many crypt experts, this figure testifies to increased confidence in institutional investors in BTC dynamics ::
- Mercantile Chicago Exchange (CME) with 16.9 billion open positions;
- Binance follows with 12 billion.
But Strong exposure with lever effect means a significant risk of bitcoins. $ 1.2 billion in short positions concentrated between $ 107,000 and $ 108,000 will probably be liquidated in the event of a break.
These forced liquidation could:
- generate a domino effect;
- Amplify volatility;
- Move the course of BTC behind its recent ceilings.
Bitcoin before US debt and institutional flows
The macroeconomic situation strongly weighs in the financial market. In particular, this is mentioned in the US budget debt that creates persistent uncertainty. In addition, the increase in the revenues of state accounts aged 20 years. This context forces investors to look for alternative coverage strategies, with Bitcoin at the top of the list.
In parallel, remarkable movements are observed with a possible redistribution of part of the digital gold reserves on the BTC. A slight rotation of 5 % of American gold reserves would be equivalent to $ 105 billion. This represents approximately a million BTC to $ 105,000.
This dynamics illustrate the growing role of BTC in the diversification of institutional portfolios, as evidenced by the level of interest open on the term markets.
At a time when Bitcoin is approaching $ 108,000, a record open interest could create a dynamic favorable to the new ATH. However, volatility always stores caution. Business to follow …
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My name is Ariela and I’m 31 years old. I have been in the area of writing a website for 7 years. I have discovered discovery and cryptocurrency for only a few years. But it is a universe that interests me a lot. And subjects treated in the platform allow me to learn more. In my free time, the singer also cultivates a great passion for music and reading (and animals!)
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.