As Bitcoin got close to the $70,000 milestone, Bitcoin futures open interest spiked on October 21. CoinGlass reports that Open Interest (OI) on Bitcoin futures contracts peaked at $40.5 billion.
The whole value of outstanding future contracts still in use is embodied by open interest. Rising OI suggests a flood of Bitcoin derivative investment, generally translating into increased leverage and more market volatility.
The majority of the Bitcoin open interest came from the Chicago Mercantile Exchange (CME), with 30.7%, followed by Binance with 20.4% and Bybit with 15%. This open interest concentration highlights the frequency of Bitcoin futures trading rule by certain platforms.
Sharp price movements during periods of high open interest can lead to significant liquidations, also referred to as “flush outs,” when forced selling on the spot market produces sudden price collapses. The last notable flush came in August, when the price of Bitcoin plunged around 20%, from over $60,000 to less than $50,000 in just two days.
Early trading on October 21 brought Bitcoin to $69,380, barely shy of the $70,000 mark, then sank softly to trade at $69,033. The asset stands only 6.4% off its all-time high of $73,738 even after the decline.
Looking ahead, analysts believe that altcoins like Ethereum and Solana, both of which have been outperforming Bitcoin in recent trading, will soar constantly beyond $70,000. During the same trading day, Solana had a 6% rise—or around $170—while Ethereum saw a 3.5% rise and came to $2,750. Since then, though, both cryptocurrencies have experienced few changes.
