Binance Open Interest Break New Record, BNB Price To Rally?
Binance cryptocurrency exchange reached a new all-time high in open interest, surpassing $8.3 billion in crypto derivatives. This surge in activity coincides with a sharp increase in Bitcoin prices, which recently hit a historic high following Donald Trump win in the U.S. presidential election. Blockchain analyst Burak Kesmeci noted that Binance now accounts for 35% of the global open interest on crypto futures, further establishing the exchange’s dominance in the market.
BNB Price Set for a Rally as Binance Open Interest Soars to All-Time High
According to on-chain data from CryptoQuant, Binance’s open interest in crypto derivatives surged to $8.3 billion. This marked a 10.24% increase in just 24 hours. Moreover, the record-breaking figure underscores the heightened trading interest on Binance, which now holds 35% of global open interest in crypto futures.
Kesmeci remarked,
“A sudden increase in Open Interest, anything above 3% within 24 hours is significant, often hints at upcoming liquidations in the futures market.”
Additionally, the increase in open interest aligns with Binance’s ongoing growth, as it now captures 35% of the open interest on crypto futures worldwide. This volume emphasizes Binance’s critical role in influencing broader market trends.
The recent surge in open interest can be attributed to Bitcoin price rally, which recently hit a new all-time high of $74K. This rally triggered liquidations of short positions across major exchanges. Consequently, over $370 million in short positions were erased with total liquidation volume reaching approximately $580 million. The sharp upward movement in Bitcoin’s value had a ripple effect on the broader crypto derivatives market.
Simultaneously, the aggregated open interest across major futures exchanges hit an all-time high of $23.3 billion, reflecting broader market enthusiasm.
BNB Price Prediction and Price Action
As Binance’s open interest hits record levels, BNB price is also positioned for potential gains. Recently, BNB chart formations have shown the cup and handle pattern, often a precursor to an upward price breakout. More so, analysts observed a resistance level around $700, a threshold that could be breached with the current trend.
With recent price action showing a rebound, BNB will strengthen further if the current open interest trend sustains. At press time, BNB price rallied a 2.6% reaching $583 over the past 24 hours. The trading volume surged by 46.55%, totaling $2.26 billion, and BNB’s market cap climbed to $84.12 billion.
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