CryptoQuant analyst Axel Adler Jr noted that the Bitcoin futures market saw a total of 57,000 BTC positions in the past three days, around the same time BTC surpassed the $93k threshold.
In a recent post, CryptoQuant analyst Axel Adler Jr. said that traders have opened BTC (BTC) positions amounting to 57,000 BTC in the past three days. At current market prices, the accumulated amount of BTC positions is worth $5.34 billion.
“This is the largest liquidity increase in the past year,” said Adler.
According to data from CoinGlass, in the past 24 hours, long positions on Bitcoin have gone up by 33.71%, reaching a volume of $74.4 billion. Meanwhile, BTC short positions have decreased by 27.5% with a 24-hour volume of $68.2 billion.
On April 23, BTC long positions make up more than 44% of all open positions, while the other 55% consists of short positions.
This recent surge in market liquidity comes shortly after BTC broke through the $93,000 threshold. At press time, BTC has gone up by nearly 6% and is currently trading hands at $93,615. In the past day, BTC even soared as high as $93,777.
As previously reported by crypto.news, as much as $602 million was liquidated from the cryptocurrency market in the last 24 hours, indicating a 130% increase. Following suit, BTC open interest also saw a slight increase of 14% to $121.6 billion.
What could the surge in liquidity mean for Bitcoin?
The massive inflow of futures positions on BTC could suggest heightened leverage and bullish convictions among traders, which can further boost the ongoing rally and minimize price corrections. It indicates that more traders are bullish on Bitcoin and its potential to maintain its strong performance.
Not only that, total futures open interest across platforms recently hit record highs, led by CME and Binance. This reflects a growing capacity within the derivatives market’s ability to absorb large trades without extreme slippage.
On the other hand, a rapid increase in open interests have also increased the chances of high market volatility occurring in the near future. If a price drop were to occur, it could trigger mass liquidations from traders maintaining current positions, further depleting the market.
