Bitcoin and Ethereum Open Interest Near ATHs Signal Rally
Bitcoin and Ethereum open interest have climbed near their respective all-time highs, reflecting elevated trading volumes amid recent volatility. Ethereum’s open interest peaked at over $70 billion on August 23, driven by large treasury buys, then retraced to around $55 billion but remains high. Bitcoin open interest similarly holds around $80 billion, close to its $86 billion record. Historically, spikes in open interest often precede consolidation phases before another surge in both open interest and price. After February’s and June’s peaks, brief consolidations led to fresh rallies. If Bitcoin open interest and Ethereum open interest hit new highs again, traders may see renewed bullish momentum. Market participants should watch open interest levels toward late September to gauge the next price moves in BTC and ETH.
Bullish
The near-record open interest levels for BTC and ETH suggest rising trader engagement. Historically, such high open interest precedes consolidation and subsequent rallies, indicating potential bullish momentum. If OI breaks past previous peaks, price is likely to follow suit, driving a new upswing in both short-term and longer-term market trends.