Bitcoin Open Interest Exceeds $40 Billion Amid Rising Long Positions

Bitcoin reached a new all-time high of $124,474 on August 13 but has since declined to around $113,000. Analysts indicate potential further downside risks.

Open Interest and Market Dynamics

Bitcoin open interest across exchanges exceeded $40 billion, reflecting a 150% increase from August 2024 levels.
The positive funding rate indicates strong long positions among traders, but also suggests a crowded trade.
A sudden price decline could trigger forced liquidations, increasing market volatility.

Institutional Holdings and ETF Activity

BTC holdings by exchange-traded funds (ETFs) and institutional investors surpassed 1.3 million.
US-based spot Bitcoin ETFs hold $146 billion in net assets, accounting for 6.47% of BTC's market cap.
This week saw over $645 million in outflows from spot Bitcoin ETFs after previous weeks of inflows totaling nearly $800 million.
BlackRock’s IBIT leads with $84.78 billion in net assets as of August 19.

Despite the downturn, Bitcoin's spot trading volume exceeded $6 billion, suggesting possible bullish momentum. Some analysts suggest BTC may follow a trajectory similar to gold, targeting $600,000 by early 2026. Currently, BTC trades at $113,845, down 1.5% in the last 24 hours.