- Bitcoin’s open interest and reduced supply on exchanges signal growing market confidence, setting the stage for a potential rally.
- Strong institutional demand for Bitcoin ETFs and bullish technical indicators hint at a potential surge to $75K and beyond in 2024.
Despite the concerns around “Uptober” previously discussed in a recent CNF update, it was noted that Bitcoin might show annual growth in October 2024. According to data from CoinGlass, Bitcoin’s open interest (OI) in perpetual futures reached a multi-month high, with a weighted funding rate of 0.0136%, last seen in June when Bitcoin hit $71,950.
This suggests a bullish market sentiment, supported by CryptoQuant’s report via a recent tweet, showing that Bitcoin’s OI across all exchanges hit an all-time high of $19.7 billion on Oct. 15. This increase signals growing liquidity and heightened market activity, though it may bring volatility as both buyers and sellers remain evenly matched.
#Bitcoin Open Interest Reaches New All-Time High of $19.8 Billion
“This upward trend in the derivatives market indicates a growing influx of liquidity and increased attention in the cryptocurrency space.” – By @EgyHashX
Full post https://t.co/l6CIyhO11o pic.twitter.com/HJxrxe2JP6
— CryptoQuant.com (@cryptoquant_com) October 15, 2024
Spot ETFs and RSI Point to Potential Rally
Further bullish signals come from a continuous downtrend in Bitcoin’s supply on exchanges, which reached a five-year low of 2.68 million BTC. This decline, alongside a 55% price growth year-to-date, indicates that traders are holding their assets rather than selling, reducing the potential for sell-offs.
Additionally, the demand for Bitcoin spot exchange-traded funds (ETFs) is rising. On Oct. 14, net inflows reached $555.8 million, signaling strong institutional interest. Nate Geraci, president of ETF Store, noted that net inflows have approached $20 billion over the last 10 months.
As Bitcoin also maintains support above the 200-day simple moving average of $63,335, technical indicators suggest a continued upward trajectory, with analysts pointing to the possibility of Bitcoin reaching $233,000 by early 2025.
According to CoinMarketCap data today, Bitcoin (BTC) is currently trading at $68,330.01, having surged by 4.35% in the past day and 10.01% in the past week.
