Why the Bitcoin rally may not end anytime soon

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  • Open Interest in BTC grew despite a surge in price.
  • USDT whales could accumulate large amounts of BTC going forward.

When Bitcoin [BTC] was at $25,000 a few weeks ago, many traders felt that it was an opportunity for them to get BTC at a discount. As BTC’s price soared, many felt that there would be a correction soon.

Open Interest grows

The ongoing growth in open interest over the past week is a factor supporting the sustainability of this Bitcoin rally. It indicates spot accumulation, with open interest reaching levels comparable to those in October when the price stood at $25,000.

Source: coinglass

The rising open interest in Bitcoin over the past week suggests a shift towards spot accumulation. Spot accumulation typically implies that investors are acquiring actual bitcoins for long-term holding rather than engaging in speculative trading.

This behavior is often seen as a positive sign for because it reflects a more stable and long-term investment approach. When investors accumulate Bitcoin in the spot market, it can contribute to a healthier and more sustainable upward trend in its price.

This is because it signifies a belief in the long-term value of the asset, which can positively influence market sentiment and contribute to the overall bullish outlook for Bitcoin.

An unidentified fund or institution has once again received a transfer of 60 million USDT from Tether Treasury. Since 20th October, this entity has accumulated a total of 1.76 billion USDT from Tether Treasury.

After which, the addresses have moved these funds to various crypto exchanges. With the current value of USDT, this substantial amount could be used to purchase approximately 44,000 BTC at an average price of $40,000 per Bitcoin.

Read Bitcoin’s [BTC] Price Prediction 2023-24

If this fund decides to get a bunch of Bitcoin with the 1.76 billion USDT it got, it could be good for Bitcoin’s value. Big moves like this often affect the market, and people watch them closely to understand what might happen next.

At press time, BTC was trading at $44,326.57 and its price had grown by 1.93% in the last 24 hours.

Source: Santiment

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