Bitcoin Nears All-Time High as Demand Surges
Bitcoin (BTC) surged past $122,000 on Friday, fueled by strong buying pressure from U.S. traders and a surge in leveraged bets. This rally pushed Bitcoin closer to its all-time high, with open interest (OI) reaching a record $89 billion.
Demand and Leverage Drive Bitcoin’s Ascent
The cryptocurrency briefly exceeded $122,000, driven by increased spot demand and leveraged trading. This surge triggered $153 million in short liquidations within 24 hours as Bitcoin approached its all-time high of $124,128, according to CoinGlass data.
U.S. Investors Lead the Charge
U.S. investors are largely responsible for the recent price surge, as indicated by the Coinbase Premium gap. This gap showed Bitcoin trading $113 higher on Coinbase compared to other exchanges. Cryptocurrency analyst Maartun noted that this suggests U.S. investors are willing to pay a premium for Bitcoin on Coinbase.
Institutional Interest Remains Strong
Institutional demand has also contributed to Bitcoin’s momentum. U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced inflows throughout the week. These products have seen $2.2 billion in net inflows since Monday, signaling a shift in investor sentiment after outflows the previous week.
Economic Uncertainty Boosts Crypto
The improved investor sentiment follows the delay of the U.S. September jobs report due to a government shutdown. This delay has increased interest in cryptocurrencies, leading to higher prices.
Leveraged Bets Reach Record High
Traders have also shown a greater appetite for leveraged risk, with Bitcoin’s open interest reaching an all-time high of $89 billion, according to CoinGlass data.
Glassnode noted that Bitcoin’s open interest saw a reset after last week’s options expiration, “clearing the slate” of hedging activity and setting the stage for the fourth quarter.
The renewed open interest now reflects a more deliberate positioning on market direction and volatility.
Bitcoin Lags Behind Gold and Silver in YTD Performance
Despite Bitcoin’s renewed momentum, it still trails gold and silver in year-to-date performance, according to Maartun. Bitcoin has seen a 25.6% increase year-to-date, compared to gold and silver, which have grown by 46.7% and 61.8%, respectively.
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