Bitcoin reaches a record level of open interests. While its price flirts with $ 107,000, a possible massive liquidation of short positions could propel the BTC to a new historic summit. The details below!
In short
- The record open interest of $ 72 billion on Bitcoin increases the risk of mass liquidation.
- The American debt pushes investors to transfer gold reserves to Bitcoin.
Open interest in bitcoin: record lever and imminent liquidations
The cryptocurrency market today seems marked by a Explosion of open interest in Bitcoin term contracts. Concretely, the latter reached a historic record at $ 72 billion. This represents an increase of 8 % in just one week.
For many crypto experts, this figure testifies to the increased confidence of institutional investors in the BTC dynamics ::
- The Mercantile Chicago Exchange (CME) with 16.9 billion open positions;
- followed by Binance with 12 billion.
However, this Strong exposure by leverage implies a significant risk for Bitcoin. $ 1.2 billion in short positions concentrated between 107,000 and $ 108,000 are likely to be liquidated in the event of a break.
These forced liquidations could:
- generate a domino effect;
- amplify volatility;
- Push the course of the BTC beyond its recent ceilings.
Bitcoin in front of American debt and institutional flows
The macroeconomic situation weighs heavily on the financial market. It is mainly alluded to the American budgetary debt which creates persistent uncertainty. Added to this is the increase in yields of treasury bills at 20 years old. This context pushes investors to look for alternative coverage strategies, with Bitcoin at the top of the list.
In parallel, notable movements are observed with the possible reallocation of part of the digital gold reserves to the BTC. A modest rotation of 5 % of American gold reserves would be equivalent to an influx of $ 105 billion. This represents approximately a million BTC at $ 105,000.
This dynamic illustrates the growing role of the BTC in the diversification of institutional portfolios, as evidenced by levels of interest open in the term markets.
At a time when Bitcoin is approaching $ 108,000, a record open interest could create a dynamic conducive to a new ATH. However, volatility always imposes caution. Business to follow …
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