Bitcoin’s value soars amidst open interest reset: bulls eye $100,000 milestone.
$100K ‘in Sight’ as Open Interest Reset Boosts Bitcoin Bulls
As investors anxiously await the week’s last Wall Street open, one thing is clear: the momentum behind Bitcoin’s price surge is gathering pace, and traders are firmly bullish on the cryptocurrency’s prospects. As we approach the end of the week, the BTC price momentum is building, with many analysts and traders convinced that $100,000 is no longer a distant dream, but a realistic target in the near future.
Why Open Interest Matters
Open interest is a crucial metric because it reflects the market’s level of conviction. When open interest is high, it means that there are a large number of traders who are willing to take on risk, either by buying calls or selling puts. In other words, open interest is a proxy for market sentiment – the higher the open interest, the more confident traders are in the market’s direction.
Bitcoin’s Most Bullish Chart Since 2017
Take a look at the chart below, and you’ll see what we mean about open interest:
Note: Chart not provided in original content.
What’s Driving the Buying Frenzy?
So, what’s behind this surge in open interest and Bitcoin’s price momentum? A combination of factors, experts say. First, there’s the growing institutional interest in Bitcoin, driven by the likes of MicroStrategy, Square, and Coinbase. These big-name players are pouring millions into Bitcoin, which sends a powerful signal to the market.
Second, there’s the looming threat of inflation, as central banks around the world unleash a wave of quantitative easing to prop up their economies amidst the ongoing pandemic. This has led to a surge in demand for safe-haven assets like gold and Bitcoin, as investors seek refuge from the looming economic storm.
Third, there’s the sheer size of the Bitcoin market itself. With its market capitalization now north of $1 trillion, Bitcoin is no longer just a niche asset – it’s a major player in the global financial market. This means that even small movements in the market can have a significant impact on the price, as seen in recent days.
$100,000 in Sight?
So, is $100,000 ‘in sight’? Well, we wouldn’t say that just yet, but we do think that the current momentum in the market is strong enough to take us much higher. With open interest at record highs and traders firmly bullish on Bitcoin, the stage is set for a continued rally.
Of course, as with any market, there are always risks and uncertainties lurking beneath the surface. Regulatory crackdowns, cyber attacks, and even changes in global monetary policy could send the market tumbling. But for now, the bulls are firmly in control, and we’re not going to bet against them.
