Ethereum Open Interest Drops Amid Bitcoin Rally
The cryptocurrency market has been witnessing some intriguing movements, particularly with Ethereum (ETH) and its open interest. According to FX Empire's article titled "Ethereum Open Interest Drops $310 Million Despite Bitcoin Rally: Is ETH Price at Risk?", the price of Ethereum opened above $2,600 for three consecutive days starting October 17th. However, despite a strong rally in Bitcoin prices reaching an 80-day peak of $28,323, Ethereum showed signs of stagnation.
This lackluster performance is attributed to early buyer fatigue as traders scaled down their positions significantly over two days leading up to October 17th. The total value of active futures contracts dropped by more than $310 million during this period. This decline in open interest suggests waning confidence among investors regarding further upward momentum for Ethereum without fresh capital inflows or sustained bullish activity.
Bitcoin Demand Surges Due to ETF Purchases
An analysis from Unchained highlights how increased buying activities have propelled Bitcoin demand recently. In their report titled "Bitcoin Price Hits a 10-Week High as Demand Spikes: CryptoQuant Report," it was noted that both spot bitcoin ETFs and whales contributed significantly towards heightened demand last week—resulting in a notable rally pushing BTC just under $28k—a ten-week high mark achieved through substantial monthly growth figures reported by onchain analytics firm CryptoQuant.
The surge can be largely credited toward purchases made via these funds which saw daily acquisitions close around eight thousand bitcoins per day—the highest level since July earlier this year—and if such trends continue into Q4 next year could potentially drive prices even higher. Experts cited within the publication pointed out seasonal factors favorably impacting current conditions given historical patterns observed across previous halving cycles where similar gains were recorded.
Sources:
- Ethereum Open Interest Drops $310 Million Despite Bitcoin Rally: Is ETH Price at Risk?
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- Bitcoin Price Hits a 10-Week High as Demand Spikes: CryptoQuant Report
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