Bitcoin open interest exceeds $40B as price nears $70K

Bitcoin’s (CRYPTO:BTC) open interest on derivatives markets has hit a record high as the cryptocurrency approached the $70,000 price level on October 21.

CoinGlass reported that open interest (OI) on Bitcoin futures contracts reached $40.5 billion, reflecting a significant increase in leveraged positions.

Open interest measures the value of outstanding futures contracts that have yet to expire, signaling the level of capital in Bitcoin derivatives.

High OI suggests increased leverage and market volatility, which could trigger significant market movements if large positions are liquidated.

The Chicago Mercantile Exchange (CME) holds the largest share of Bitcoin futures OI with 30.7%, followed by Binance at 20.4%, and Bybit at 15%.

When open interest reaches elevated levels, sharp price movements may lead to cascading liquidations, potentially causing sudden price drops, or “flush outs.”

The last major flush-out occurred in early August when Bitcoin’s price dropped nearly 20% within two days.

If Bitcoin surpasses $70,000, analysts suggest that this could boost altcoins like Ether (CRYPTO:ETH) and Solana (CRYPTO:SOL).

Both ETH and SOL had strong performances, with Ether reaching $2,750 and Solana nearing $170, though they have since seen slight pullbacks.

At the time of writing, the Bitcoin price was $69,030.24.