Bitcoin surpasses its highest open interest in 2021, reaching $34 billion.
Bitcoin’s open interest reached a new record high of $33.9 billion on March 13, signaling increased price expectations from investors, according to SoSo Value. This milestone coincided with Bitcoin reaching an all-time high of $73,637. The previous peak of $23 billion in BTC contract positions, which was achieved during the bull cycle top in November 2021, was surpassed. SoSo Value also highlighted that funding rates on major exchanges like Binance reached their highest point since early last year. The analytics firm advised caution as the cryptocurrency market hovered around these new highs.
In addition, data from spot Bitcoin ETFs showed that there were over $1 billion in net inflows from nine issuers on March 12. BlackRock’s iShares BTC ETF led the pack with a single-day net inflow of $848 million, its highest ever. Meanwhile, Grayscale’s GBTC experienced net outflows of less than $80 million and has seen a total outflow of over $11 billion in the past three months.
MicroStrategy’s executive chairman, Michael Saylor, reaffirmed his belief in Bitcoin as the superior digital currency and ultimate digital property. When asked about MicroStrategy’s strategy, Saylor stated that the plan is to continue buying more Bitcoin and never sell. He predicted that a significant portion of the world’s $900 trillion wealth will eventually flow into BTC as more companies and investors move into the digital space for optimal capital preservation.
MicroStrategy is one of the largest holders of Bitcoin, with a stack of 205,000 BTC worth over $15 billion. The company’s stock has also performed well, growing by 157% year-to-date, outperforming the S&P 500 index.
Overall, Bitcoin’s open interest reaching new highs and the influx of institutional investment through spot Bitcoin ETFs indicate a positive sentiment among investors. However, caution is advised as the market may experience a correction given the historic levels of open interest and inflows.
