Bitcoin’s Surge Past $61K May Indicate Potential Local Peak, Binance Trading Volume Suggests

The surge in the market’s activity was also evident in the uptick of futures open interest (OI), which measures the total funds committed in open futures contracts. Glassnode reported that more than 8,600 fresh contracts, denominated in bitcoin, made their way into the market.

Significant spikes in OI typically indicate a influx of new capital into the market, as traders utilize leverage to take advantage of short-term price shifts. While this surge in capital might have played a role in bitcoin’s upward momentum, it also introduces risk into the market. Heightened leverage has the potential to magnify both profits and losses, thereby increasing the chances of volatility in the immediate future.