The recent rise in Bitcoin open futures contracts has experts worried that the market might be getting a bit too heated.
Analysts from Bitfinex noted in a report on October 1 that Bitcoin’s open interest (the total number of futures contracts that haven’t been settled yet) has jumped to over $35 billion. This amount has often been linked to local price peaks in the past.
On September 27, open interest hit $35.52 billion, the highest level since June 7, when it reached $37.69 billion. At that time, Bitcoin was nearing its all-time high of $70,759 before dropping nearly 18% over the next month to $58,239.
This situation has led analysts to express concerns about potential market overheating.
Since September 27, Bitcoin’s open interest has decreased by about 9% to $32.32 billion, and its price has also dipped toward $60,000, partly due to rising tensions in the Middle East.
Currently, Bitcoin is trading at $61,629, down 4.36% over the past week. However, Bitfinex analysts believe this pullback is still within a healthy range and won’t disrupt the overall upward trend.
They suggest that a slight drop of 5-10% could actually help reset the open interest without hurting the market’s positive momentum.
