Binance Hits $8.3B Open Interest High—Here’s What It Signals For the Crypto Market
08 Novembre 2024 - 5:00AM
NEWSBTC
Binance, one of the world’s largest crypto exchanges, has achieved
a new milestone as its open interest (OI) surged to an all-time
high (ATH) of $8.3 billion, according to a report by CryptoQuant
analyst Burak Kesmeci. This increase, representing a 10.24% growth
over the past 24 hours, emphasizes Binance’s substantial share of
global crypto futures positions. The surge in OI also highlights
Binance’s influence on market trends, given that it now accounts
for roughly 35% of all open futures positions across all exchanges
globally. The total OI across exchanges, including Binance, reached
$23.3 billion, setting a record in the sector, Kesmeci reveals.
Implications Of Binance High Open Interest To understand what the
increase in Binance open interest means for the crypto market, it
is worth first looking into what the term ‘open interest’ means.
Notably, open interest (OI) refers to the total number of
outstanding contracts in the futures market, encompassing both long
and short positions. A rise in this metric often suggests increased
trading activity and interest, making it a crucial indicator for
market participants. Binance OI Reaches New ATH of $8.3 Billion
“Open Interest across all exchanges—including Binance—stands at
$23.3 billion, marking a new ATH. This means Binance alone accounts
for around 35% of all global futures positions.” – By
@burak_kesmeci Link 👇https://t.co/zfnGiGUtKL
pic.twitter.com/DfWbZH3tfN — CryptoQuant.com (@cryptoquant_com)
November 6, 2024 Kesmeci explained that a significant jump in open
interest such as that of Binance—particularly when it exceeds a 3%
increase within a 24-hour period—frequently precedes heightened
market volatility and potential liquidations. This means that both
bullish and bearish positions could come under increased pressure
as market dynamics shift, creating potential for major moves across
the crypto landscape. The CryptoQuant analyst particularly wrote:
Remember, the OI metric represents the total number of open long
and short positions in the market. Sharp increases in OI suggest
that, as volatility spikes, both long and short positions could
face increased pressure, potentially leading to liquidations. BNB’s
Price Movement Amid Broader Market Trends Binance’s native token
BNB, has also experienced a notable price movement, mirroring the
broader uptrend within the crypto market led by Bitcoin’s
resurgence. Related Reading: Binance Coin Breaks $600! Is There
More Upside Ahead For BNB? Earlier today, BNB breached the $600
mark, reaching a 24-hour high of $610 before experiencing a slight
pullback to $595, at the time of writing. Despite this correction,
the asset remains up 2% over the past 24 hours. This price action
brings BNB closer to its previous ATH of $717, recorded on June 6
of this year, with the current price reflecting a 17.3% decrease
from that peak. Featured image created withe DALL-E, Chart from
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