BTC Breaks a New Record in Futures Contracts
According to a report by CoinGlass, open positions in Bitcoin ( BTC ) futures hit a record high of $40.5 billion on 21 October.
The data shows that the Chicago Mercantile Exchange (CME) has the largest share of open positions in Bitcoin futures, at 30.7%.
CME is followed by Binance with 20.4% and Bybit with 15%.
Bitcoin BTC Approaches $ 70,000
Bitcoin price approaches $70,000 as open positions increase.
Open positions refer to the total value or number of futures contracts that have not yet expired.
It is considered an important indicator of market activity and investor interaction for Bitcoin BTC derivatives.
An increase in open positions can signal an increase in leverage in the system. And it potentially leads to great volatility in the market.
During periods of high open interest, the market can experience significant volatility, especially when sudden price changes occur.
Such situations can trigger successive liquidations, leading to forced selling in the spot market and sudden drops in the Bitcoin price.
A similar situation was seen in August, when the Bitcoin price fell by nearly 20 per cent to below $50,000 in just two days.
Bitcoin reached $69,380 on 21 October but fell to around $69,033 after encountering resistance.
It is currently trading 7.4% lower compared to its all-time high of $73,738, according to CoinGecko data.
In addition, altcoins such as Ethereum and Solana outperformed Bitcoin with daily gains.
Ethereum is up 2.3% to $2,708, while Solana is trading at $166.42, up 4.8%. Both assets have experienced slight pullbacks from recent highs.
Open Positions Increase as Trump’s Chance of Winning Increases
Bitcoin’s rise to a three-month high comes as the market awaits the US presidential election on 5 November.
Polls show that former US president Donald Trump is increasingly likely to win the election. This situation also strengthened the US dollar.
Trump’s proposed tax policies are expected to keep US interest rates high. And it leads to a weakening of the currencies of trading partners.
The increased likelihood of Trump winning the elections supported Bitcoin. Because the Trump administration is thought to have a more tolerant attitude towards cryptocurrency regulations.
According to Polymarket data, Trump’s probability of winning is 61% and Harris’s probability of winning is 38%.
While no major economic events are expected this week, markets are focused on corporate earnings and potential risks related to the US elections.
Speaking to CNBC, Pepperstone Research Manager Chris Weston said that investors need to make a critical decision. Whether to intensify election-related transactions with just 15 days to go.
Weston said the best way to hedge risks related to Trump’s tariff policies is to hold long positions in euros, Swiss francs and Mexican pesos.
Brad Bechtel, Global Head of Jefferies’ Foreign Exchange Unit, said rising interest rates have enabled the dollar to strengthen, especially against these currencies.
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