March 24, 2025
U.Today - Bitcoin , the first and largest cryptocurrency by market value, extended its recovery from lows of $83,804 on Sunday into Monday, reaching intraday highs of $88,804. Bitcoin generally stayed around $85,000 during the weekend, constrained by concerns about inflation and the larger U.S. economy.
At press time, Bitcoin has increased by 4.24% in the previous 24 hours to $88,599, with most other cryptocurrencies trading in the green.
Bitcoin’s recent price surge has coincided with an increase in open interest. This has triggered the issuance of a Bitcoin market alert as leverage increases on the market.
According to CryptoQuant, as Bitcoin approached $88,000, open interest (OI) hit record levels above $32 billion. While this may seem positive, there is a catch: high open interest and rapid price increases raise the risk of liquidation cascades.
If the rally continues, the FOMO could fuel a parabolic move. But if bulls lose control, this might result in a sharp correction as over-leveraged positions get wiped out.
In this light, CryptoQuant urges the crypto community to keep a lookout for sudden open interest (OI) shifts and Bitcoin’s price action.
According to CoinGlass data, open interest on the Binance exchange’s BTC-USDT futures surged by nearly 7,000 BTC ($614.6 million) in the early Monday trading session. In a tweet, CoinGlass noted that "about 7,000 BTC open interest was added on Binance futures." Open interest is the number of active (or open) contracts at any given time.
"This is a good sign, volatility is coming," CoinGlass said, referring to the significant spike in open interest.
Furthermore, Binance funding rates have remained positive, indicating a propensity for leveraged bullish (long) bets.
This article was originally published on U.Today
