On Tuesday, Bitcoin price was trading around $29,300, dropped below $30,000 for the first time in a month, and surged as high as $31,500 again today. Likewise, Ether, which fell as low as $1,717 and is currently close to $1,915, is in a rapid recovery.
Total cryptocurrency market cap exceeds $1.32 trillion
Interestingly, this latest surge has come from more than 60 investors, including big names like the Paul Tudor Jones family of crypto derivatives platform FTX, Alan Howard, Sequoia Capital, Third Point, Thomas Bravo, Israel Englander, Coinbase Ventures, and SoftBank Group. He came in with a collection of $900 million.
Alongside FTX, amid the bearish non-immutable token craze, NFT marketplace OpenSea has raised $100 million led by VC firm a16z, giving it a valuation of $1.5 billion.
“This means that a16z thinks trading volumes for NFTs will likely reach around $60 billion per year,” said Jeff Dorman, CIO of digital asset management firm Arca.
Nearly three months after the mind-blowing rally since March 2020, the crypto market remains stagnant, while the private crypto market continues to attract attention and raise money, boosting confidence in the future of crypto.
A jump in price and volatility at a seven-day low after such a deep dip was a critical moment. Additionally, CME futures showed future prices to be lower than spot prices, further supporting this jump.
Bitcoin open interest is on the rise
As we reported, open interest in Bitcoin has also been increasing sharply for more than a month. Sitting at 395,000 BTC from 95,000 BTC from May 24 bottom, it is currently approaching April and May highs, indicating that many traders are actively trading in the derivatives market in this slow market environment, according to Arcane Research. .
He added that 395 thousand Bitcoins correspond to 2.1% of the circulating supply and according to historical data, it did not stay at such high levels for long.
Last summer, open interest (OI) grew steadily before a mid-August correction that reduced it by 50,000 BTC. Similarly, OI saw a significant drop as BTC surged above the 2017 ATH in late December followed by sharp drops in the middle of the April and May corrections.
However, as funding rates and base premiums are weak and considerably lower than in April, the market is not facing a major long liquidation event and is likely to use less leverage on the upside than it was a few months ago.