The open interest in Bitcoin increased by $650 million: Investors anticipate further BTC price growth
Date: 2023-09-17 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
The growth of open interest in Bitcoin amidst a price correction
The past two weeks have brought an unexpected turn of events in the Bitcoin market. Despite a correction in cryptocurrency prices, open interest in Bitcoin increased by an impressive $650 million from September 1st to 15th. This indicates that investors and speculative traders remain optimistic about Bitcoin's future.
This increase in open interest would be seen as a bullish signal for the market, indicating an influx of new capital. Investors may view Bitcoin as a reliable asset for preserving and growing their investments, despite temporary price fluctuations.
Recent data also showed that following the announcement of an increase in the Consumer Price Index (CPI), the price of BTC increased by 7%, reaching $26,800. However, investors are not rushing to sell their Bitcoins, which may indicate a belief in further cryptocurrency price growth.
The Exchange Reserve metric, which tracks changes in cryptocurrency exchange balances, also shows that many holders are choosing to store their Bitcoins in their own wallets rather than on exchanges. This may signify their readiness to hold their assets in anticipation of long-term growth.
Investor confidence in Bitcoin's long-term potential remains strong
Despite this optimism, investors should exercise caution, as a selling wall at $28,750 could pose a barrier to further Bitcoin price growth. The Global In/Out of the Money Around Price metric confirms this possibility, indicating a significant number of holders who may decide to take profits in this range.
Overall, the Bitcoin market remains unpredictable, but the growth in open interest and investor confidence in its long-term potential underscore its importance as an asset in the modern financial world.
Open interest in Bitcoin (BTC) continues to grow despite some price correction. Speculative traders have injected $650 million into the BTC derivatives market, signaling ongoing faith in the cryptocurrency's potential. Such an increase in open interest may suggest that investors anticipate further Bitcoin price growth.
Potential hurdles on the path to $30,000 for Bitcoin
It's worth noting that despite temporary price fluctuations following the release of data on the Consumer Price Index, investors are not rushing to withdraw their funds from Bitcoin. This indicates a long-term perspective they see in this cryptocurrency.
However, despite the optimism, reaching the $28,750 price point may pose difficulties due to a selling wall. Nonetheless, if bulls manage to surpass this level, it could be a key moment in achieving the $30,000 mark. The Bitcoin market remains unpredictable, but the growing interest from investors and their intention to hold assets highlight Bitcoin's role as a significant asset in the modern financial world.
