Bitcoin (BTC) continues its upward trajectory, with the price surging to almost retest its all-time high (ATH) of $124,128. On Friday, the flagship cryptocurrency gained around 3%, reaching a high of $123,855 before retracing slightly to trade around $122k at the time of writing.
The recent price gains can be attributed to the heightened demand in futures leveraged market trading. Data analysis from CoinGlass shows that Bitcoin’s Open Interest (OI) and volume have been steadily increasing since the September 28 price rebound. The OI for BTC has reached an all-time high of $88.52 billion, with the OI-Weighted Funding Rate remaining positive, indicating a bullish sentiment in the market.
The surge in demand for leveraged trading has led to significant liquidations in the crypto markets. In the last 24 hours, a total of $549 million was liquidated, with a majority of the liquidations involving short traders. Bitcoin accounted for $238 million of the total liquidations, with over $179 million coming from short traders.
The ongoing U.S. government shutdown has also played a role in boosting BTC gains. As the Congress deadlock enters its third day, investors have turned to risk-on trading strategies, with Bitcoin and Gold both experiencing bullish outlooks. However, the lack of crucial economic data that could influence upcoming Fed rate decisions has created some uncertainty in the midterm.
On a larger scale, the current Bitcoin rebound aligns with the expected bull run in the fourth quarter. Institutional investors have been accumulating BTC as a hedge against inflation and market uncertainty. Data analysis shows that enterprises using Bitcoin as a treasury have increased by 27 in the past 20 days, now totaling 343 and holding 3.87 million BTC. Additionally, U.S. spot Bitcoin ETF issuers have seen a net cash inflow of $1.35 billion since the beginning of October.
Overall, the cryptocurrency market continues to show resilience and strength, with Bitcoin leading the way in terms of price gains and market sentiment. As institutional adoption of BTC grows and market uncertainty persists, the outlook for Bitcoin remains positive in the near term. Investors should conduct their own research before making any investment decisions, as market conditions can change rapidly.