Bitcoin Open Interest Don Pass $40B, E Dey Raise Concern For Long Squeeze
Bitcoin open interest for all exchanges don reach pass $40 billion, e rise more than 150% since August 2024 levels, as whales and short-term traders dey enter leveraged long positions. Even though e rise, funding rate still dey positive, meaning say plenty people dey do bullish trade and e fit cause long squeeze if price drop sharply.
Top cryptocurrency don drop from im recent all-time high of $124,474 for Binance to about $113,845, with key support near $110,000. Institutional demand still dey steady: spot Bitcoin ETFs and corporate treasuries don hold over 1.3 million BTC, US-based spot ETFs dey manage $146 billion net assets. But recent outflows of $645 million dis week reduce small optimism.
Short-term volatility fit increase as speculative flows dey dominate, but structural buying from ETFs dey provide steady bid. Traders suppose dey watch Bitcoin open interest and funding rates well for signs of forced liquidations and potential rebound chances.
Bearish
De surge for Bitcoin open interest reach over $40 billion, plus di funding rate still dey positive, show say de long trade full well well and e fit cause sharp sell-off if price fall cause forced liquidations. Historically, when open interest spiked before corrections like early 2021 and mid-2023, e dey come before quick downward moves as levered positions dey unwind. Even though institutional ETF holdings give structural support, recent outflows and sharp pullback from de $124,474 peak mean short-term bearish pressure dey. For long term, ETF accumulation fit hold price floors but traders suppose prepare for more volatility and possible capitulation events because of long squeeze.