Tag: Open Interest

  • Bitcoin Drops as Fed Rate Hike Strengthens Dollar and Raises Rate Risks

    Bitcoin Drops as Fed Rate Hike Strengthens Dollar and Raises Rate Risks

    Bitcoin extended its decline after the Federal Reserve raised interest rates by 25 basis points, lifting the benchmark range to 3.75%–4.00%. BTC has fallen more than 3% over three trading days, weighed down by a stronger dollar and expectations of further tightening.

    Fed Rate Hike Adds Pressure to Bitcoin

    Markets had priced in a more than 90% probability of the increase before the announcement, reflecting expectations for a more aggressive policy stance. Higher US rates tend to boost demand for bonds and support the dollar, while tighter financial conditions can reduce the liquidity available for risk assets such as Bitcoin.

    The dollar had already been strengthening ahead of the decision. The DXY index continued to push toward 100, a level that has attracted notable buying interest in recent sessions. A stronger dollar can also compete with Bitcoin for capital, as investors increasingly favor dollar-denominated assets when US bond yields become more attractive.

    Dollar Strength and Open Interest Shape BTC Trading

    Bitcoin demand has shown signs of cooling as the dollar gains ground and rate expectations remain firm. Short-term selling pressure has persisted as a result. Open interest across exchanges recently climbed to roughly $25.5 billion, indicating greater participation in Bitcoin derivatives. However, rising open interest combined with falling prices can also point to growing bearish positioning, especially while Bitcoin remains sensitive to liquidity and interest-rate expectations.

    2022 Tightening Cycle Offers a Limited Comparison

    History suggests the Federal Reserve rarely stops after a single increase. Since 1994, the central bank has gone “one and done” only once, and single hikes have remained uncommon across the 12 tightening cycles since 1955. Current market pricing points to another 75 basis points of tightening within six months.

    Bitcoin’s track record through tightening cycles is much shorter. The cryptocurrency traded through the 2015 cycle, although thinner liquidity makes that period less comparable to today. The 2022 cycle provides a closer reference because Bitcoin had developed a more mature market structure. BTC peaked near $69,000 in November 2021 before falling about 40% ahead of the March 2022 hike.

    Today, Bitcoin is also trading around 40% below its October high of $126,000. That decline places BTC near a drawdown level similar to the one seen before the 2022 tightening cycle began.

  • Hyperliquid Open Interest Hits $11.51B as HIP-3 and RWA Perpetuals Surge; HYPE Falls Below $60 on Unstaking Pressure

    Hyperliquid Open Interest Hits $11.51B as HIP-3 and RWA Perpetuals Surge; HYPE Falls Below $60 on Unstaking Pressure

    Hyperliquid’s open interest has surged to $11.51 billion, marking its highest level this year, even as broader crypto leverage remains sharply below levels seen in October 2025. The platform’s growth is driven by HIP-3 markets and real-world asset (RWA) perpetuals, which now dominate activity. Meanwhile, HYPE has fallen below $60 after major unstaking moves by Multicoin Capital and Selini Capital, adding downward pressure during a broader market weakness.

    HIP-3 Markets Reshape Hyperliquid Activity

    According to Coinglass, total crypto market open interest stands at $116.66 billion, still 47% below the October 10 level. In contrast, Hyperliquid has expanded its open interest to $11.51 billion, the highest since the crash when Bitcoin traded near $100,000. The platform’s HIP-3 framework, launched on October 13, 2025, enables anyone staking 500,000 HYPE to deploy perpetual markets without approval from the core team. This has led to a surge in RWA perpetuals, which now account for $3.61 billion in daily open interest, making them Hyperliquid’s largest single category. RWA perpetuals have overtaken Bitcoin, HYPE, and other layer-one tokens, and now generate half of daily perpetual volume, up from just 3% at the start of the year.

    Market Share Grows as Rivals Contract

    Hyperliquid’s share of perpetual open interest relative to major centralized exchanges has reached a record 9.5%, according to Hypeflows data, up from 6.9% in late May. However, its open interest remains about 23% below its October 2025 peak of nearly $15 billion. Binance, Bybit, and Gate.io have contracted more sharply during the post-crash deleveraging, so the market-share increase reflects a smaller contraction rather than a direct migration of traders. Notably, TradeXYZ, built by Hyperunit, controls more than 90% of HIP-3 open interest, meaning one venue carries close to one-third of Hyperliquid’s total open interest. HIP-3 markets sit outside Hyperliquid’s native liquidity pool, with deployers controlling oracle quality, margin settings, and liquidity provision. This concentration raises questions about stability as competing exchanges enter the same category.

    CEX Competition and Unstaking Pressure on HYPE

    Binance has entered the space with a SpaceX pre-IPO perpetual contract on May 21 and added seven U.S. equity and ETF perpetuals on July 9, offering leverage up to 25x. These contracts bring centralized-exchange liquidity into a category Hyperliquid previously dominated. Meanwhile, HYPE fell below $60 to $58, dropping 7.31% in 24 hours, approaching a key support level. On-chain data shows Multicoin Capital unstaked 1.96 million HYPE worth about $120 million from three wallets after nearly two months of staking. The wallets involved are 0x57c6d4bd52f592a265f59b595a905b04c848174b, 0xab319403e72c5e97c65ef70031bab8827efc5297, and 0xd4d56a30a4a745f8ba732e8b453b7066260fbc10. While unstaking does not confirm a sale, it makes tokens transferable and available for exchange deposits or reallocations. Selini Capital also recently unstaked about 504,000 HYPE, worth roughly $31 million, adding another large withdrawal.

    Conclusion

    Hyperliquid open interest reached $11.51 billion as HIP-3 markets and RWA perpetuals drove stronger platform activity. Meanwhile, HYPE fell below $60 after major unstaking moves by Multicoin Capital and Selini Capital. Market participants should watch support levels, liquidity concentration, and further large-holder activity.

  • Shiba Inu Whales Withdraw 174.8 Billion SHIB as Price Holds Key Support

    Shiba Inu Whales Withdraw 174.8 Billion SHIB as Price Holds Key Support

    Shiba Inu whales have pulled a massive 174.8 billion SHIB tokens from exchanges over the past 24 hours, signaling accumulation despite the meme coin’s ongoing price decline. Data from CryptoQuant reveals a negative exchange net flow as SHIB successfully defended the $0.0000040 support level. At the current price of $0.00000417, the withdrawn tokens are valued at approximately $792,002.

    Such transfers typically move coins into self-custody or third-party wallets, reducing the supply available for immediate sale. The total SHIB balance on exchanges has slipped to 86.6 trillion tokens. If demand increases while exchange reserves continue to fall, supply conditions could tighten, potentially supporting price recovery.

    Derivatives activity also picked up, with open interest in SHIB futures rising 5.7% to $28.8 million (representing about 6.52 trillion SHIB). However, open interest remains about 80% below its January peak of $145.5 million, reflecting cautious trading amid broader market weakness.

    From a technical perspective, SHIB continues to trade above the $0.0000040 support zone after touching $0.00000408 on Monday. Buyers have defended this level repeatedly, and attention now turns to the descending resistance trendline that has capped gains since May 10. A breakout above that line would clear the next technical barrier.

    The number of SHIB wallets has surged to a record 1,676,535, with nearly 75,000 new holders added between July 5 and July 6. While some observers suggest the sudden spike could stem from a technical glitch, the overall trend underscores growing retail interest.

    Market participants will watch whether these on-chain trends—whale accumulation, declining exchange supply, rising open interest, and record wallet counts—translate into price momentum in the coming days.

  • Bitcoin Open Interest Surges to New Peaks as Bullish Sentiment Returns

    Bitcoin Open Interest Surges to New Peaks as Bullish Sentiment Returns

    Bitcoin continues to trade near the $64,000 mark, supported by elevated open interest and positive funding rates. Strong market participation and improving investor confidence are driving the recovery, with traders focused on key resistance and support levels.

    Key Takeaways

    • Strong market participation keeps Bitcoin open interest at elevated levels.
    • Positive funding rates reflect continued bullish sentiment among traders.
    • The $64,200–$64,500 resistance and $63,000 support remain crucial price levels.

    After a period of volatility, Bitcoin has entered a stronger trading phase. Over the past 24 hours, the world’s largest cryptocurrency has held close to the $64,000 level, boosting confidence across the crypto market. Over the last seven days, Bitcoin has gained roughly 6%, restoring optimism after heavy selling earlier. Market experts note that the steady rise is encouraging traders to return with fresh enthusiasm.

    The latest price action has attracted attention as Bitcoin successfully holds important support levels. Buyers are entering the market while selling pressure eases compared to recent weeks. This balance has created a healthier environment, giving investors more certainty about Bitcoin’s short-term trajectory.

    Open Interest Remains at Elevated Levels

    One of the clearest indicators of growing confidence is Bitcoin’s open interest — the total number of active futures and options contracts across exchanges. High open interest typically signals that more traders have entered the derivatives market, anticipating larger price moves. Current data shows open interest remains high, reflecting strong participation from both retail traders and institutional investors. While no trusted report has confirmed a new all-time high in the last 24 hours, the current figures still point to robust market activity. A high open interest often indicates fresh capital entering the market, supporting stronger trading volume and liquidity.

    Positive Funding Rates Support Bullish Sentiment

    Another key metric is funding rates. Over the past 24 hours, funding rates have stayed positive on major exchanges. This means traders holding long positions pay a small fee to those holding short positions — a pattern that emerges when the majority expects prices to rise. Analysts view this as a sign of improved confidence. However, they also caution that extremely high funding rates can suggest excessive optimism, which may increase the risk of a sudden correction.

    Price Levels Remain Important

    Bitcoin is currently trading near the resistance zone between $64,200 and $64,500. A breakout above this level could open the door to $66,000. On the other hand, the $63,000 level remains key support. Falling below that could trigger selling pressure and interrupt the recovery.

    Investor Confidence Continues to Improve

    Investor confidence has gradually returned as Bitcoin recovers from recent lows. The improvement isn’t solely price-driven — stable derivatives activity, positive funding rates, and stronger buying interest have all contributed. Market sentiment indicators have also improved, suggesting investors are more comfortable with Bitcoin’s current position and expect stability unless economic conditions shift sharply.

    High Open Interest Also Brings Risk

    While elevated open interest reflects confidence, it also carries risks. A large number of leveraged positions can increase volatility if prices move unexpectedly. Rising open interest alongside rising prices usually signals fresh capital and healthy growth. However, if prices fall while open interest remains high, leveraged traders may face forced liquidations, accelerating declines.

    Why This Matters

    This market behavior signals a healthy return of trader optimism and liquidity. The combination of elevated open interest and positive funding rates shows fresh capital actively entering the market, positioning Bitcoin for a potential breakout toward $66,000 if key support holds.

    Outlook Remains Positive

    Bitcoin has entered the week with momentum, trading above $64,000 with strong participation. Elevated open interest, positive funding rates, and improved sentiment point to growing confidence. While no credible news has confirmed a new all-time high for open interest in the last 24 hours, current derivatives activity suggests a healthy market. A breakout above $64,200–$64,500 could shift focus to $66,000, while holding above $63,000 would support further recovery.

    Frequently Asked Questions

    1. What is Bitcoin open interest? Bitcoin open interest is the total number of active futures and options contracts that remain open across crypto exchanges.
    2. Why does high open interest matter? High open interest usually shows greater market participation and often signals that traders expect larger price movements.
    3. What do positive funding rates indicate? Positive funding rates suggest that more traders expect Bitcoin prices to rise than fall.
    4. Which price levels are important now? The key resistance lies between $64,200 and $64,500, while $63,000 remains the major support level.
    5. Has Bitcoin reached a new all-time high in open interest? No trusted report published within the last 24 hours confirms a new all-time high, although open interest remains at elevated levels.