Bitcoin Open Interest (OI) has seen significant growth lately, with several experts reporting that the metric has reached a new all-time high. However, Alphractal, an investment data analytics platform, responded to these claims, noting that open interest in BTC has yet to return to its current peak.
Bitcoin Open Interest Remains Below All-Time High
According to According to Alphractal, open interest in Bitcoin, the largest cryptocurrency asset, continues to lag its current all-time high, indicating that the market is still cautious despite recent positive price movements.
Bitcoin open interest is a key indicator that refers to the total number of BTC futures or options contracts outstanding in the market. While this metric saw notable growth during the recent Bitcoin price rally, it has yet to surpass its current high, which was reached in 2021.
The data analytics platform shared the update on Platform X (formerly Twitter) after citing a wave of analysis on BTC open interest hitting a new all-time high. “We have seen a lot of analysis shared on a new ATH in open interest. However, we emphasize that this depends on the number of exchanges analyzed,” the platform said.
Alphractal claims that open interest in Bitcoin is still below its current high after conducting a broader survey of several crypto exchanges data. Nevertheless, the metric is currently approaching the level, with an all-time high located at $42.25 billion, while the current value is $41.92 billion, suggesting growing sentiment among investors and traders who continue to take a cautious approach.
Drawing attention to the 2021 cycle, the platform highlighted that open interest during the period failed to maintain its upward movement after creating a double top. Alphractal attributed the recent increase in open interest in Bitcoin, also seen in late 2021, primarily to the Chicago Mercantile Exchange (CME). Meanwhile, if the key metric indeed reached a new high, the platform committed to sharing the information with the crypto community.
Is BTC preparing for a new test?
Currently, BTC is showing potential for a sustained uptrend after seeing a rebound earlier this week, sparking optimism within the broader community for a rally to come. Although BTC maintains a healthy movement, crypto expert and trader, Rekt Capital has warned investors on a possible retest in the coming days.
Rekt Capital noted that currently, Bitcoin is gradually moving closer to Channel Top in preparation for a crucial new test. “After all, Bitcoin has failed every new test over the past few months,” he added. According to the expert, this new test is crucial for BTC because it will serve as a catalyst for a short-term price rise, possibly to a new absolute record.
Featured image from Unsplash, chart from Tradingview.com
