Bitcoin is at a “tipping point” after a historic 2024 conference in the United States, which open interest broke out on the futures market; according to popular analyst Horse. “We finally broke out of this range,” he declared.
Open interest refers to the number of open derivatives contracts in the Bitcoin market.
What does rising open interest mean for Bitcoin?
An increase in this indicator means that investors are opening new positions in the derivatives market. In general, the use of leverage increases as new contracts are added.
An increase in open interest can therefore lead to higher volatility for a financial asset. That is exactly what we are seeing at the moment, as the Bitcoin price has crashed by almost 5% in the past 24 hours.
Independent analyst Horse shared the chart below, in which we can see that Bitcoin’s open interest on Coinbase Pro has climbed above a level it has remained below since March (all-time high).
The market seems to be hopeful again about a new strong period for the Bitcoin price. Whether we can reach new all-time highs soon depends on several factors, such as the further development of the macroeconomic situation and the narrative surrounding Bitcoin in the United States. Donald Trump’s election chances can also influence the future of Bitcoin.
Bitcoin and Donald Trump’s statements
The analyst looks at the events of the past weekend quite soberly. Donald Trump of course announced that he wants to set up a Strategic Bitcoin Reserve for the United States.
Initially, this would mean that the US will not sell its approximately 200,000 Bitcoin. In theory, new purchases could also be added in the long term, but Trump has not yet announced this in concrete terms.
“Whether they will actually come out is debatable, but you have to be a little bit more bullish on this asset class now,” Horse said. In essence, he is indicating that the chances of a bullish future have increased especially this weekend.
That seems to be the best conclusion, because we have not been given any certainties. The chance that Bitcoin will be better off later has increased, but not guaranteed by Donald Trump.
Trade €10,000 for free and get €10 bonus
Want to enter the crypto world and perhaps buy Bitcoin or another crypto? Now is your chance! Thanks to a special deal between Newsbit and Bitvavo, our readers get an exclusive offer.
Create an account at Bitvavo using the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you will also pay no trading fees on your first 10,000 euros in transactions for 7 days after registering your account.* Sign up now!
*Please note that terms and conditions apply to this promotion.
Source: https://newsbit.nl/bitcoin-op-kantelpunt-na-historisch-moment/
