Investor Demand Pushes Bitcoin Futures Open Interest to All-Time High of $39.4B

Bitcoin futures open interest (OI) reached a record high of $39.43 billion on July 29, according to crypto market data platform CoinGlass.

The new OI surpasses the previous record of $39.03 billion set on March 29, 2024, and represents a significant increase from the prior day’s OI of $37.49 billion. The surge highlights rapidly growing investor demand for Bitcoin.

Open interest measures the total number of outstanding positions in the futures market. An increase in open interest suggests that more participants are entering the market or increasing their positions, which can indicate heightened trading activity and liquidity in Bitcoin.

Notably, Bitcoin’s dominance in the crypto market has risen, reflecting its strengthening position. As of July 24, over 75% of Bitcoin’s short-term holders were profitable, demonstrating strong retail demand. If the trend continues, a Bitcoin rally could be on the horizon.

Trump to End Crypto Persecution

The surge in Bitcoin futures OI happened after Bitcoin’s price jumped to over $69,700 following US President aspirant Donald Trump’s positive remarks about crypto assets.

At the Bitcoin 2024 convention in Nashville, he promised to end what he called the “persecution” of the crypto industry if he wins the upcoming presidential election. 

The anticipation of favorable regulatory changes under Trump’s potential leadership could further boost BTC price before the November election.

Additionally, the record high open interest and other market signals suggest that Bitcoin’s price could experience a significant breakout.

Analysts Foresee New Highs for Bitcoin

Benjamin Cowen, CEO of Into The CryptoVerse, mentioned in a July 29 post on X that Bitcoin’s dominance reached its peak weekly close for this cycle, indicating that BTC might keep increasing its market share in the upcoming months.

#BTC dominance just had its highest weekly close all cycle 🔥

We should see BTC continue to reclaim more market share over the next few months pic.twitter.com/gkdPECTC8r

— Benjamin Cowen (@intocryptoverse) July 29, 2024

Crypto analysts are now looking at Bitcoin’s next major target at $71,500, with the possibility of reaching new all-time highs. Popular analyst Rekt Capital mentioned in a July 27 post that Bitcoin’s price could soon revisit the range high of around $71,500. Bitcoin is trading 5.8% below its all-time high of over $73,750, recorded on March 14.