Bitcoin (BTC) has added over 10% in value over the last seven days as the leading crypto asset continues its rebound move to August 2025 levels. While market participants anticipate a further increase, investors are bullish as Bitcoin open interest has hit an all-time high (ATH).
Bitcoin in extreme leverage conditions
As highlighted by CryptoQuant analyst JA Maartunn, in a post on X, Bitcoin’s open interest soared to $45.3 billion in the last 24 hours. This signals very extreme leverage conditions, which indicate that market participants are betting on a further increase in price.
The “Uptober” frenzy might have hit Bitcoin, hence the new ATH in open interest. For clarity, open interest refers to the total fiat value of Bitcoin futures and options contracts tied to the market. These have not been settled or closed.
This indicates that traders are highly speculative in engaging the asset. While this could continue to catalyze further price growth, realistically, the market is risky and fragile currently. Any dip in the price of BTC could trigger massive liquidations.
Bitcoin’s price has been swinging between a low of $118,611.80 and an intraday peak of $121,086.41 within the last 24 hours. As of press time, Bitcoin exchanges hands at $120,453.22, which represents a 0.86% increase within this time frame.
The trading volume reflects market sentiment, and it is up by 9.12% to $72.96 billion. This indicates that investors are doubling down on the acquisition of the asset before it breaks out in a bullish rally that could set a new ATH if the current momentum lingers.
With the BTC price trading above $120,000, if it finds stability at this level, the coin could make a move on flipping the ATH of $124,400 it set in August 2025.
Why are institutions backing Bitcoin rally?
Data shows that institutional buyers are also active, as demand for spot Bitcoin exchange-traded funds (ETFs) has regained momentum. The ETF market recorded $675 million in inflows on Oct. 2, the highest amount since mid-September.
Meanwhile, leading asset manager BlackRock, through its IBIT, has extended its dominance to Bitcoin futures as well. As U.Today reported, BlackRock has accumulated $38 billion in open interest to emerge as the largest venue for Bitcoin options.
It might be that these institutional holders are seeing something retail investors are not.
Recently, JPMorgan, the banking giant, stated that Bitcoin is undervalued compared to gold. The banking giant believes BTC could soar to $165,000. Time will reveal if Bitcoin has started its journey to such a new peak.