Bitcoin (BTC) Important Signal: The "Open Interest" of Crypto Assets Hits New High, Total Market Capitalization Target Aiming for 4 Trillion USD

On Friday (July 11), during the Asian session, the cryptocurrency market rose for the fourth consecutive day, driven by the bullish momentum of Bitcoin (BTC) reaching a historic high of $118,000. This has pushed the derivatives market's open interest to a historical high, with over $1 billion in short positions liquidated in the past 24 hours. Market sentiment is clearly bullish, potentially driving the total market capitalization of crypto assets to surpass the $4 trillion mark.

Bitcoin breaks through 118,000 USD, igniting optimism across the entire market

The sudden strengthening of Bitcoin's bullish momentum may be catalyzed by the heightened expectations of interest rate cuts following the Federal Reserve's release of meeting minutes on Wednesday. Bitcoin's bullish momentum has sparked optimism in the derivatives market, leading to a historical high in open positions.

Coinglass data shows that as of Friday's press release, the total amount of open interest (OI) in the crypto derivatives market reached $171.65 billion, while Bitcoin OI reached $81.36 billion.

(Source: Coinglass)

Off-exchange investors may see this as a bullish signal, as increased capital inflows into the derivatives market driven by heightened buying activity have spurred a surge in open contracts.

In addition to the rise in open contracts, the liquidation amount in the Crypto Assets market reached 1.25 billion USD in the past 24 hours, leading to a massive Close Position of short positions worth 1.12 billion USD, while long positions amounted to 131.44 million USD.

(Source: Coinglass)

Overall, the increase in open interest and the elimination of short positions indicate that the optimism in the derivatives market is rising, which increases the likelihood of a future leveraged-driven pump.

Crypto Assets market capitalization is expected to reach 4 trillion dollars

As of Friday's press release, the total market capitalization of Crypto Assets has reached 3.62 trillion dollars, supported by Bitcoin hitting an all-time high, with Bitcoin accounting for over 64% of the total market capitalization. The bullish market in the Crypto Assets market is gradually approaching the highest valuation of 3.73 trillion dollars set on December 17.

(Source: Trading View)

The Fear and Greed Index is at 67, indicating that investor greed is gradually rising, showing an increased risk appetite in the overall market sentiment.

(Source: CMC)

If this trend continues, the market capitalization of Crypto Assets could reach a new high in just eight months. In this scenario, investors may see an increase in market inflows, with valuations potentially reaching 4 trillion dollars.