Due to the forecast of BTC price “fireworks” this month, open Bitcoin contracts hit a record high

Bitcoin (Bitcoin) Is in line with “explosive” price trends, as the derivatives market will resume formation in 2022, the new forecast points out.

in a tweet On January 4th, Arcane Research analyst Vetle Lunde confirmed that the open interest (OI) denominated in BTC has returned to the historical high of November.

Open positions require “fireworks” within a few weeks

Bitcoin futures and options suffered heavy losses during the BTC/USD retracement at the end of the year, but as the holiday ended, consensus began to form around a major rebound.

Some people say that institutional traders should become the main force in the Bitcoin market, and derivatives have shown signs of renewed interest.

OI is now back to the level it touched last time in the third week of November, when BTC/USD itself reached an all-time high of $69,000.

However, unlike then, the financing interest rate is currently neutral-this is the key basis for the formation of volatility.

“The open interest of BTC perpetual contracts denominated in BTC today surpassed November highs, and leverage has accumulated at a neutral to slightly lower financing interest rate. It seems to be an explosive tbh,” Lunde commented .

Annotated chart of BTC OI and Binance financing rate.Source: Vetle Lunde/Twitter

Lund is not alone. In another article on Monday, Filbfilb, the co-founder of trading platform Decentrader, also pointed to encouraging national OI activities.

“The OI is very high relative to the market value… I wonder if we think it will exceed the last week of the month without fireworks,” he said wrote.

Ethereum sets its first high in 2022

Data from Cointelegraph Markets Pro and Transaction view At the time of writing this article on Tuesday, BTC/USD was trading at close to $47,380, and at the same time, recovering from the decline, the currency pair fell to a two-week low.

related: With the resumption of BTC withdrawals in January, Bitcoin exchange balances tend to be at historical lows

Although the analyst is Generally calm Regarding short-term actions, altcoins are still the main point of interest.

“The biggest financial opportunity point for altcoins still exists,” Cointelegraph writer Michaël van de Poppe debate, Reiterate Previous convictions Regarding the opportunities offered by alternative markets.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Ether (Ethereum) Is the altcoin with the largest market value, reaching $3,879 on the day, the best performance so far in 2022.

ETH/USD 1-hour candlestick chart (Bitstamp). Source: TradingView