Bitcoin futures open interest jumps 10% as price rally ignites trading frenzy on small exchanges

Bitcoin futures open interest (OI) spiked to $57.56 billion in the early trading hours of March 24—a 10.97% increase in a single day. Bitcoin futures open interest (OI) is a critical indicator of market activity, sentiment, and potential price direction.

Between March 21 and March 24, Bitcoin futures open interest (OI) experienced notable fluctuations. On March 21, OI stood at $52.83 billion, edging slightly to $52.86 billion on March 22, a negligible increase of 0.06%.

The following day, March 23, saw a dip to $51.87 billion, a 1.87% decrease. However, the real action unfolded on March 24, when OI surged by 10.97% to reach $57.56 billion. This spike followed Bitcoin’s price, which climbed from $83,804 on March 23 to $87,674 on March 24, a 4.62% increase.

Data from CoinGlass shows that certain exchanges stand out in terms of their significant increases in OI. BingX led the pack with a remarkable 121.15% surge, bringing its OI to 9.02K BTC (approximately $790 million).

Gate.io followed with a 26.25% increase, raising its OI to 85.88K BTC (around $7.53 billion), while Bitunix saw a 17.66% rise to 51.85K BTC (about $4.55 billion). Although BingX’s percentage jump was the most dramatic, its absolute OI remains modest compared to larger players like Gate.io, which contributed more significantly to the overall OI pool.

Meanwhile, Binance, the largest exchange by OI with 110.43K BTC ($9.69 billion), experienced a more moderate 9.86% increase — substantial given its scale but below the market average.

The robust growth at Gate.io and Bitunix signals broadening activity across mid- and low-tier exchanges.

Several factors likely contributed to the surge in open interest on March 24. The 4.62% Bitcoin price rally was a clear catalyst, as rising prices often attract traders to futures markets, particularly for long positions betting on further gains. Market sentiment and speculation also played a role in the rapid OI growth — especially BingX’s 121.15% leap.

While the price increase caused a surge in futures activity, exchange-specific catalysts could have further fueled the increases. For instance, BingX’s outsized growth might stem from a low starting base or platform incentives like lower fees or promotions, while Gate.io and Bitunix likely benefited from their larger user bases and established liquidity. Additionally, leverage and margin trading probably amplified the spike in OI.

The 10.97% OI jump and a 4.62% price rise indicate a bullish sentiment. The OI increase outpacing the price gain suggests traders are aggressively positioning for more upside. However, this rapid growth, particularly on smaller exchanges like BingX, also points to heightened speculation, which can amplify price moves but raises the risk of increased volatility. When paired with leverage, elevated open interest increases the likelihood of liquidations. Any sharp pullbacks could trigger forced selling, further accelerating downward pressure.

In terms of OI distribution across exchanges, Binance holds 16.83% of the total OI with $9.69 billion, but its 9.86% growth lagged the market’s 10.97% average. Meanwhile, Gate.io’s 26.25% surge pushed its OI to 85.88K BTC, indicating a potential shift in dominance among exchanges.

Timeframe variations in OI changes also revealed that shorter-term shifts were less dramatic, with Kraken leading 1-hour changes at +1.22% and Bitget topping 4-hour gains at +1.82%. The 24-hour window, dominated by BingX, captured the bulk of the activity, suggesting a concentrated burst of trading.

The OI/24h volume ratio offers further insight. Deribit’s ratio of 4.0109 indicates lower trading turnover relative to its OI, hinting at longer-term positions, while Gate.io’s ratio of 2.1339 reflects higher activity, consistent with its OI growth. A lower ratio often signals aggressive short-term trading.

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