Institutional investors appear to have generally missed out on bitcoin’s rally to a new all-time high above $24,000, as while retail investors were leveraging their long positions, institutions were cutting theirs and taking profits.
According to a report published by OKEx Insight, open interest reached a new all-time high of $8.9 billion over the weekend, and OKEx led with $1.6 billion in open interest. Similarly, BTC perpetual swaps saw their market price exceed the index price as funding rates hit a new high.
Per OKEx Insight, excessive funding rates indicate rising leverage in the market, which implies retail investors trading on cryptocurrency exchanges were leveraging their long positions as BTC’s price rallied to its new all-time high.
Citing data from the Chicago Mercantile Exchange, which ended just before BTC moved past the $20,000, OKEx noted that open interest “consistently declined over the last three reporting periods,” which “continues to show that institutional investors were taking profits, and that they largely missed out on the latest rally.”