Bitcoin Momentum Rises as Open Interest and Market Cap Soar, ETF Speculation Fuels Market

By: Isha Das

In recent news, Bitcoin's open interest saw a remarkable climb over $20 billion, a high not observed since Dec. 2021, reigniting the market's excitement reminiscent of Nov. 2021's all-time high. The open interest experienced a significant 10% growth within just 24 hours.

CME notched a noticeable 15% uptick, with a current allocation of 133,000 BTC in open interest contracts, translating into a notional value of $6.20B. Binance followed suit, escalating by 10% within a day, achieving a notional value of $4.55 billion, represented by 98,000 Bitcoin.

Meanwhile, Bitcoin demonstrated considerable resilience in market activity, increasing its market capitalization from $850 billion to $925 billion. This surge signified the fourth largest one-day rise in Bitcoin's market cap since Dec. 2021. Notably, since Jan. 1, Bitcoin saw a 5.6% rise, outperforming MicroStrategy's 15.6% decline, leading to speculation of an impending Bitcoin ETF approval. A trend towards divestment from MicroStrategy in favor of the potential ETF is apparent.

Moreover, BTC is gaining pace above $45,000, with predictions of a swift upswing towards the $48,000 level, if maintained above $44,000. With Bitcoin picking up steam and ETF speculations adding fuel to the fire, it looks like the market is poised for some exciting shifts.