• Bitcoin’s (BTC) spot market activity was being powered by the U.S. market, with Coinbase taking the lead.
• Derivatives markets were also contributing to BTC’s ongoing rally, as the Open Interest hit its yearly peak.
• Short liquidations surged over the last week, indicating a higher capital inflow into the BTC market and increased speculative interest.
What’s Behind Bitcoin’s Ongoing Rally?
Bitcoin (BTC) has seen a 13.27% jump in value week-on-week fueled by institutional interest in cryptocurrencies and TradFi giant BlackRock’s application for a spot Bitcoin Exchange-Traded Fund (ETF). This bullish rally is getting impetus from derivatives markets as well as spot trading activity in the U.S., mainly on Coinbase.
Open Interest Reaches Yearly Peak
Crypto market data provider Kaiko reported that the Open Interest (OI), or dollar value locked in BTC futures contracts, hit its yearly peak recently while OI denominated in BTC touched its highest level since January 2023. An increase in price, complimented by an increase in OI indicates a higher capital inflow into the BTC market and increased speculative interest – driving up prices further as short-position traders cover their positions to limit losses.
U.S Market Driving Spot Trading Activity
Kaiko noted that spot trading activity is not being dominated by derivatives markets due to steady ratio of Binance to Coinbase volume over the past three months with no notable spikes or declines. However, Coinbase has become more popular than Binance since SEC’s lawsuit against both crypto behemoths and it can be assumed that this popular platform is primarily used in American markets driving up spot trading activity therefor pushing prices even higher.
Surge In Short Liquidations
Coinglass reported that shorts worth more than $3 million were liquidated over the last 24-hour period which indicates increased capital inflow into Bitcoin markets and increased speculation among traders resulting in further bullish momentum for Bitcoin prices.
Conclusion
With increasing institutional interest complemented by increasing derivatives and spot trading activities all pointing towards further bullish momentum for Bitcoin prices; it looks like we can expect further growth from this king coin as we move forward!
