Bitcoin Market Sentiment Heats Up As Open Interest Sees Sharp Uptick
The general crypto market has begun to experience bullish movements, and Bitcoin, the largest digital asset, surged briefly from $84,000 to the $88,400 threshold. As BTC’s price undergoes a slight uptick, several areas of its market dynamics saw a notable increase, such as the Open Interest (OI).
A Rebound In Bitcoin’s Open Interest
Bitcoin’s market sentiment seems to be shifting toward a positive outlook as the crypto market slowly rebounds. In an encouraging report from Ali Martinez, a technical and on-chain expert, Bitcoin’s Open Interest across major crypto platforms has seen a sharp uptick.
With BTC’s open interest rising alongside the market growth, the advancement signals a wave of fresh optimism among large and small-scale investors. This increase in Open Interest, which is sometimes seen as a crucial marker of speculative activity, implies that traders are getting more active and placing bets on big price moves in the future.
Data shows that the open interest witnessed a surge of about $3.2 billion, bringing its overall value to over $30.5 billion. Ali Martinez stated that this substantial growth occurred just within 24 hours as prices spiked to the $87,000 threshold.
Prior to Monday’s upswing, BTC’s open interest was about $27.2 billion by Sunday, reflecting an over 10% increase over a 24-hour time frame. As BTC continues to stabilize near crucial resistance levels, the growing open interest may impact BTC’s price, triggering an extension of the ongoing upward trend.
When this happens, more investors and traders are likely to engage the flagship asset as they position themselves for what might be the next significant step in its price trajectory. This is because such notable growth in on-chain activity can be a turning point for Bitcoin.
Profits For Long-Term BTC Holders Grow
BTC’s recent upward trend has resulted in significant profit for long-term holders or whales in the past few days. At the $84,882 price level, Ali Martinez highlighted that the long-term holders realized close to $155 million in profits. Should the upward trend continue, these whale holders can be looking at a massive profit in the near term, especially if the asset revisits key levels such as the $100,000 mark or its current all-time high.
Reports from Darkfost, a market expert, reveal that these investors are already realizing about 85% in profit as the Long-Term Holders Spent Output Profit Ratio (SOPR) metric hovers around the 1.85 level. However, the expert has warned investors to be prepared for all scenarios and be willing to reduce losses if necessary or take modest profits if conditions deteriorate.
At the time of writing, Bitcoin was trading at $87,117, demonstrating a nearly 3% increase in the past day and an almost 4% rise in the past week. Investors’ sentiment has massively improved alongside the price growth. CoinMarketCap data shows an uptick in trading volume by more than 181% in the past day.
Featured image from Adobe Stock, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
