Binance OI Hits Record $8.3B: Here’s What It Means for Market Volatility

Bitcoin climbed past $75,000 on Wednesday and $76,000 on Thursday morning, setting a fresh record before stabilizing near $74,500. Market experts remain optimistic about the cryptocurrency’s potential for further growth, fueled by expectations of a pro-crypto stance from Donald Trump’s administration.

Data also suggests that significant volatility may continue in the near term, as reflected by Binance’s OI.

Record Open Interest on Binance

Binance’s open interest (OI) reached a new all-time high of $8.3 billion in the past 24 hours. According to the latest analysis by market intelligence firm CryptoQuant, the figure reflects a 10.24% surge. Binance now accounts for approximately 35% of the total $23.3 billion OI across all exchanges.

This sharp rise in OI signals a potential increase in market volatility, as large shifts in open interest – especially those exceeding 3% within 24 hours – are often precursors to liquidations in the futures market. Open interest represents the total number of outstanding long and short positions in the market, and a surge like this indicates that both positions could come under pressure as volatility spikes.

“Remember, the OI metric represents the total number of open long and short positions in the market. Sharp increases in OI suggest that, as volatility spikes, both long and short positions could face increased pressure, potentially leading to liquidations.”

The crypto market is riding high on Trump’s stunning comeback, with several indicators showing increased optimism. One notable metric, the Coinbase Premium Index, spiked upward, hinting at a possible rise in Bitcoin demand within the US. Additionally, within a span of just one hour on November 6th, 11 newly created whale wallets withdrew a significant 1,807 BTC, worth around $132 million, from Binance.

Bitcoin Bulls Need This Move to Fend Off Pullback

Meanwhile, crypto analyst Ali Martinez has issued a cautionary note for Bitcoin investors as the TD Sequential indicator recently flashed a sell signal on Bitcoin’s 4-hour chart, suggesting a potential pullback to $72,000. According to Martinez, the appearance of this signal indicates that Bitcoin’s recent rally may face a temporary reversal, and latecomers to the bull market should exercise caution.

However, the analyst added that the critical level to watch is close to $75,400. Should BTC hold above this threshold, it would invalidate the current bearish setup, potentially setting the stage for an upswing toward $78,000.