- Rising open interest, increasing institutional investor demand, and a break above the 6-month downtrend pushed Bitcoin (BTC) prices above the $72,000 level.
- The U.S. Bitcoin ETF holdings reached a new all-time high of $6.6 billion, indicating growing institutional demand for BTC.
- Bitcoin’s open interest increased by $2 billion in 48 hours, and the total Bitcoin open interest reached a new all-time high at $22.77 billion as the crypto derivatives market continues to dictate price action.
Bitcoin’s price has been on an upward trend over the past few days, reaching $72,100 for the first time since June 2024. Several key factors have contributed to this rally.
US Bitcoin ETF Holdings Reach New Highs
The holdings of US Bitcoin ETFs reached a new all-time high of $66 billion as Bitcoin climbed above $70,000. On Oct 28th alone, spot Bitcoin ETFs saw net inflows of $4.794 million, led by BlackRock’s IBIT and ARK Invest’s ARKB. This steady inflow of institutional investment has provided support for Bitcoin’s price.
Bitcoin Open Interest Jumps by $2 Billion
In tandem with the price increase, Bitcoin’s open interest jumped by $2 billion in just 48 hours to reach an all-time high of $2.277 billion. The active crypto derivatives market continues to influence price action. Over $150 million in leveraged positions were liquidated as Bitcoin crossed $70,000, adding momentum to the rally.
Closing Above $76,000 Needed to Confirm Breakout
While breaking above $70,000 is an important milestone, technical analyst Peter Brandt notes that Bitcoin needs to close decisively above $76,000 to technically confirm the breakout. This would require a daily close above the key resistance level that capped previous rallies this year.
Conclusion
Increasing institutional investment, rising open interest, and technical breakouts have all contributed to Bitcoin’s surge above $70,000 for the first time in 5 months. Sustained strength will depend on Bitcoin’s ability to hold these gains and confirm the breakout by closing above key resistance levels.
