Bitcoin’s open interest (OI) amount increased significantly after Donald Trump won the US presidential elections, reaching $45.4 billion. This situation caused a huge climb in the price of Bitcoin and the price rose to 75 thousand dollars. Analysts offer a positive outlook to investors, suggesting that this upward trend of Bitcoin will continue.
This increase in open interest (OI) increased by 13.3%, with Bitcoin’s price reaching its peak on November 6. It occurs when the open position amount increases more than the number of contracts closed during the day. Crypto investors do not expect the Bitcoin price to drop to $73,679 in the near future. If such a decline occurs, short positions worth $1.26 billion will be liquidated in the markets. This is an important element that directly affects investors’ market expectations and risk perceptions.
Expert Opinions and Market Expectations
Veteran investor Peter Brandt stated in a post on November 6 that Bitcoin is in an important phase of the bull market. Brandt predicts that Bitcoin will reach a value of between 130 thousand and 150 thousand dollars in August or September next year. Such predictions offer a promising perspective on the future of the market.
Positive comments from analysts for Bitcoin (BTC)
- Rajat Soni: Crypto analyst Rajat Soni emphasized that Bitcoin is just at the beginning of its rise. “We are so early in Bitcoin adoption that we can still exchange BTC for paper money ($, €, £, etc.) because most people think fiat currencies are backed by tangible value,” Soni said.
- CryptoQuant Analysis Company: This company stated that Bitcoin has not increased excessively yet. “Bitcoin’s new peak does not mean that it is overvalued compared to its cost basis,” said the company, noting that Bitcoin’s Market Value / Realized Value (MVRV) ratio is still far from its peak levels in a post dated November 6. The higher the MVRV ratio, the more it signals that Bitcoin is overbought. When Bitcoin reached its all-time high of $73,679 in March, its MVRV ratio was around 2.87. However, at the time the news was published, Bitcoin’s MVRV score was at 2.19.
Market Dynamics and Investor Strategies
The increase in Bitcoin’s open position is directly related not only to price increases but also to investors’ strategies. While investors face the risk of liquidation of short positions, they have to analyze market dynamics well. In this context, what is important for investors is to accurately evaluate the general trends and volatility of the market.
Especially in a highly volatile asset like Bitcoin, the psychological effects of investors and their ability to follow market news are of critical importance in determining investment decisions. Therefore, the assessments made by analysts and investors about the future of Bitcoin play an important role in determining the direction of the market.
As a result, the increase in Bitcoin’s open interest and price movements are important indicators that investors should follow carefully. In order for the market to grow healthily and for investors to make profits, it is vital to understand market dynamics and develop strategies accordingly.
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