Bitcoin’s open interest surged to unprecedented levels, indicating heightened price expectations among investors. However, amidst historic net inflows into spot ETFs, one analytics firm warns of a potential market correction.
SoSo Value reported that Bitcoin (BTC) futures open interest reached a new all-time high (ATH) of $33.9 billion on March 13, coinciding with another all-time high for the cryptocurrency, which reached a price of $73,637 according to CoinMarketCap.
This milestone in BTC contract holdings surpassed the previous peak of $23 billion seen during the peak of the bull cycle in November 2021. SoSo Value also observed that funding rates on major exchanges like Binance reached their highest levels since early last year, prompting caution among investors as crypto markets reached these new highs.
While high funding rates suggest potential pullback risks, the surge in Bitcoin ETFs has also been noteworthy. Spot BTC ETF data revealed cumulative net inflows of over $1 billion across nine issuers on March 12. BlackRock’s iShares BTC ETF (IBIT) led the pack, attracting a record single-day net inflow of $848 million.
However, Grayscale’s GBTC experienced net outflows of less than $80 million and has shed over $11 billion in assets over the past three months.
Saylor’s Vision: Bitcoin as the Ultimate Digital Property MicroStrategy executive chairman Michael Saylor reiterated his belief in Bitcoin as the superior digital currency and ultimate digital property. He emphasized MicroStrategy’s strategy to continue purchasing Bitcoin indefinitely without selling.
Saylor predicts that a significant portion of the world’s $900 trillion wealth will eventually flow into BTC as more companies and investors seek optimal capital preservation in the digital realm.
MicroStrategy, one of the largest BTC holders, owns a stack of 205,000 Bitcoins valued at over $15 billion. Google Finance reports that the software designer’s stock has surged 157% year-to-date, outperforming the S&P 500 index.
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