Bitcoin’s open interest has soared beyond $35 billion, prompting analysts to warn of potential market froth. On September 27, open interest (OI) in Bitcoin futures reached $35.52 billion, the highest since June 2024. Historically, such levels have coincided with local price peaks, causing concern among investors.
OI is a crucial metric, representing the total number of unsettled futures contracts. At its peak, Bitcoin was trading near its all-time high before pulling back 18% within 30 days.
Since then, OI has dropped around 9%, now sitting at $32.32 billion. Bitcoin’s price has also fallen to around $60,000 amidst escalating geopolitical tensions.
Despite this, analysts believe the bullish trend remains intact, predicting that a modest 5-10% correction could help stabilize OI without significantly affecting the market’s upward momentum.