After the price of Bitcoin faced volatility over the past month, the digital currency is now in rebound mode, with projections teasing BTC price retest despite volatility
In a significant development, market data shows that Bitcoin’s price has increased by 3.68% to $88,046.16, while open interest in BTC futures on Binance has surged by $600 million.
Notably, the sharp increase signals strong market activity, with traders and experts forecasting possible price swings in the days ahead.
Bitcoin Price Rises with Open Interest
It is worth mentioning that since midnight, CoinMarketCap data shows that the world’s largest cryptocurrency, Bitcoin, has gained over 3%, reaching $88,758.16.
In similitude, open interest in BTC-USDT futures on Binance has increased by about 7,000 BTC, adding roughly $600 million to the market.
Open interest represents the number of active futures contracts yet to be settled. When both price and open interest rise together, it is often viewed as a sign of confidence among traders.
This suggests the rally could continue as traders commit more capital, expecting further gains.
However, analysts caution that rising open interest can also mean increased leveraged positions. If the market shifts suddenly, this could trigger higher volatility, leading to sharp price swings in either direction.
Meanwhile, Crypto data provider Coinglass has warned that the surge in open interest is a sign that volatility is on the way. Traders are now watching closely to see how Bitcoin reacts in the coming days.
In related news, former CEO of BitMEX Arthur Hayes recently shared In an X post that he expects Bitcoin to surge to $110,000 before pulling back to $76,500.
I bet $BTC hits $110k before it retests $76.5k.
Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause “transitory inflation”. JAYPOW told me so.
I’ll expound on that in my next essay, that’s the TLDR for your TikTok peanut brain.
— Arthur Hayes (@CryptoHayes) March 24, 2025
Reports indicate that the Federal Reserve’s expected shift in monetary policy will play a part in driving this projection.
Funding Rates Show Bullish Sentiment
Furthermore, another key factor influencing the Bitcoin movement is the funding rate, which has remained positive on Binance. This indicates that traders betting on price increases pay fees to those betting against it.
When funding rates stay positive, there is a strong demand for long positions, reinforcing the bullish sentiment.
Meanwhile, last week, Tether, the world’s largest stablecoin issuer, increased its ownership of the Bitcoin mining company Bitdeer by 21%. According to a filing with the U.S. Commission (SEC), Tether is working to diversify its investments.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
