Bitcoin Returns to Spotlight as Open Interest Hits $840M in 24 Hours

Bitcoin (BTC) is back in the spotlight as open interest has jumped by more than $840 million in the past 24 hours, causing massive liquidation to market bears.

Recent data from Arkham Intelligence has revealed a significant increase in the “Bitcoin Open Interest, which is an indication of the total number of outstanding Bitcoin futures or options contracts in the market”. This sudden surge has resulted in a whopping $73.3 million liquidation of the Bitcoin “short-side,” referring to investors who had bet on the cryptocurrency’s decline in value. This development has caused a stir in the market as it suggests a growing bullish sentiment towards Bitcoin, prompting investors to adjust their strategies accordingly.

According to Arkham, The surge in Bitcoin Open Interest coincides with BTC breaching $45000, reaching new 52-week highs.

$840M Added to BTC Open Interest in the Past 24 Hours

The first trading day of 2024 is off to a strong start – with $73.3M of BTC short-side liquidations over the past 24h.

This coincides with Bitcoin breaching $45K last night – reaching new 52-week highs.

Welcome to 2024! pic.twitter.com/aHppNK8Kew

— Arkham (@ArkhamIntel) January 2, 2024

Bitcoin started the year with a very impressive price uplift, and in less than 48 hours, it has grown as high as 7.46% to $45,618. With the impressive rally, the coin’s market cap has soared as high as $895,633,686,181, with trading volume also jumping by more than 131% to $34,861,672,193.

Bitcoin Growth: Ordinals Join the Rally

Bitcoin is not on a solo ride, as other top assets built on top of the blockchain are also on the rampage today.

According to the Arkham Intelligence post, in the past 24 hours, the top BRC-20 tokens, including ORDI, have jumped by 14.2% to $85.73, while SATS has gained 9.4% to push its price to $0.0007915.

What about tokens running *on* Bitcoin?

Top BRC20 tokens ORDI and SATS are also up 14.2% and 9.4% respectively in the past 24 hours.

Open interest on ORDI is up over 50% – from $304M to $478M so far today. pic.twitter.com/3aqsgJUBls

— Arkham (@ArkhamIntel) January 2, 2024

As revealed by Arkham Intelligence, the open interest on ORDI has jumped as high as 50% from $304 million to $478 million as the rally triggered a massive capital influx.

Bitcoin ETF and Halving Sentiments on the Horizon

The hype surrounding the likelihood of securing approval for Bitcoin spot ETF is growing and has arguably contributed to the growth in the Bitcoin Open Interest today.

While the estimated approval window is just days away, there is a growing dissent from leaders within the community that the United States Securities and Exchange Commission (SEC) may delay the approval.

Ultimately, investors are taking advantage of the promising future to take sizable positions in the coin moving forward. This ongoing surge in Open Interest is also complemented by the bullish sentiment surrounding the Bitcoin halving, an on-chain deflationary event that is considered a natural boost for BTC price growth and other altcoins correlated with the premier cryptocurrency.

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