In the last 48 hours we have witnessed first hand the return of huge volatility in the price action of the leading cryptocurrency by market capitalization, this if we take into account that Bitcoin has developed steep declines to the $51,000 area and rapid rises to the $53,000 area.
I am fully convinced that there are people who are wondering if this huge volatility is really a harbinger of strength or if the Bitcoin market is really exhausted, and a crazy correction will happen next.
We are still trying to decipher the next move in Bitcoin price action, what is certain is that according to Nancy Lubale, "The Bitcoin price soared to a new high in 2024, touching USD 53,019 on February 20, before falling sharply to USD 50,000 on some exchanges. Traders cite consistent inflows into BTC exchange-traded funds and the upcoming supply halving event as key factors behind the price movement."
In Lubale's assessment, "Bitcoin futures open interest reaches its highest level in 26 months. Bitcoin futures open interest (OI) has reached a new yearly high, reaching levels last seen in November 2021. This indicates an increase in trading activity around the largest cryptocurrency by market capitalization."
He also stated that, "Bitcoin futures OI rose more than 30% in 2023, aligning with the 23% rally in bitcoin price so far this year, reaching USD 53,000, levels last seen in December 2021"
SOURCES CONSULTED
Cointelegraph. Bitcoin price rejects at $53K as futures open interest hits a 2-year high. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
