In the recent dramatic price fluctuations of Bitcoin and Ethereum, the interest of crypto assets traders surged, leading to a rapid increase in the open contract volume of these two major crypto assets. The open contract volume of Ethereum first broke through 70 billion dollars at the end of August, setting a historical high; meanwhile, the open contract volume of Bitcoin also remained at a high level of 80 billion dollars. Historical data shows that after the open contract volume reaches a historical high, there is usually a period of consolidation, followed by a trend where both price and open contract volume rise again in sync. This indicates that if the open contract volume reaches a new high again, the prices of Bitcoin and Ethereum may also set new records.
Bitcoin and Ethereum Open Position Contracts Remain High
In the past few weeks, the price trends of Bitcoin and Ethereum have shown interesting fluctuations, with high volatility. This volatility has naturally stimulated a wave of trading, as crypto asset traders see this as a period to capitalize on price fluctuations. As a result, during this time, the open contract volumes of Bitcoin and Ethereum have risen rapidly. While this is significant in itself, looking back at previous performances, it may indicate the next direction for Bitcoin and Ethereum prices.
At the end of August, the price of Ethereum began to rise rapidly driven by large purchases from Ethereum treasury companies like Bitmine and SharpLink. This surge ultimately led to a historic high for Ethereum's price, climbing above $4950 after breaking the 2021 peak of $4800.
(Source: Coinglass)
At the same time, the open contract volume also rose rapidly, reaching a historical high. By August 23, amid this frenzy, Ethereum's open contract volume surpassed 70 billion dollars for the first time in history, which is an important milestone. Subsequently, Ethereum's open contract volume has declined somewhat. However, as of the writing of this article, it is still above 55 billion dollars, indicating that people's interest remains high.
(Source: Coinglass)
Although the open interest of Bitcoin did not reach a new high in August like Ethereum, it remains at a very high level. Data from Coinglass shows that the open interest of Bitcoin is still holding at a high level of 80 billion USD, still close to the historical high of 86 billion USD set in July.
What the New High in Unclosed Contract Positions Might Mean
Looking back at the performance when the open interest of Bitcoin and Ethereum reached historical highs, there is usually a period of consolidation, especially after the price falls. After reaching a historical high for the first time in February this year, there was a few months of consolidation.
Similarly, after the peak in June, there was a brief consolidation, which ended in July. Then, before the open interest began to rebound in August, there was another period of consolidation. This indicates that the consolidation period is not always long, but at the end of the consolidation period, the open interest always tends to rise again, which corresponds with the price increase.
From the current perspective, if the open interest of Bitcoin and Ethereum reaches a new high again, it may indicate that their prices are also ready to hit new highs. According to the trend of the past few months, the open interest may start to rise again at the end of September, driven by the price increase.
Conclusion
The open contract volume of Bitcoin and Ethereum remains high, reflecting the sustained bullish market sentiment and strong interest from traders. Historical patterns indicate that after a brief consolidation, a rise in open contract volume is often accompanied by a simultaneous price increase. If this trend continues, we have reason to expect that the prices of these two major Crypto Assets may usher in a new round of pump in the near future, and may even break through previous historical highs.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Bitcoin and Ethereum's open contract positions remain high, and if history repeats itself, BTC and ETH may reach new highs.
In the recent dramatic price fluctuations of Bitcoin and Ethereum, the interest of crypto assets traders surged, leading to a rapid increase in the open contract volume of these two major crypto assets. The open contract volume of Ethereum first broke through 70 billion dollars at the end of August, setting a historical high; meanwhile, the open contract volume of Bitcoin also remained at a high level of 80 billion dollars. Historical data shows that after the open contract volume reaches a historical high, there is usually a period of consolidation, followed by a trend where both price and open contract volume rise again in sync. This indicates that if the open contract volume reaches a new high again, the prices of Bitcoin and Ethereum may also set new records.
Bitcoin and Ethereum Open Position Contracts Remain High
In the past few weeks, the price trends of Bitcoin and Ethereum have shown interesting fluctuations, with high volatility. This volatility has naturally stimulated a wave of trading, as crypto asset traders see this as a period to capitalize on price fluctuations. As a result, during this time, the open contract volumes of Bitcoin and Ethereum have risen rapidly. While this is significant in itself, looking back at previous performances, it may indicate the next direction for Bitcoin and Ethereum prices.
At the end of August, the price of Ethereum began to rise rapidly driven by large purchases from Ethereum treasury companies like Bitmine and SharpLink. This surge ultimately led to a historic high for Ethereum's price, climbing above $4950 after breaking the 2021 peak of $4800.
(Source: Coinglass)
At the same time, the open contract volume also rose rapidly, reaching a historical high. By August 23, amid this frenzy, Ethereum's open contract volume surpassed 70 billion dollars for the first time in history, which is an important milestone. Subsequently, Ethereum's open contract volume has declined somewhat. However, as of the writing of this article, it is still above 55 billion dollars, indicating that people's interest remains high.
(Source: Coinglass)
Although the open interest of Bitcoin did not reach a new high in August like Ethereum, it remains at a very high level. Data from Coinglass shows that the open interest of Bitcoin is still holding at a high level of 80 billion USD, still close to the historical high of 86 billion USD set in July.
What the New High in Unclosed Contract Positions Might Mean
Looking back at the performance when the open interest of Bitcoin and Ethereum reached historical highs, there is usually a period of consolidation, especially after the price falls. After reaching a historical high for the first time in February this year, there was a few months of consolidation.
Similarly, after the peak in June, there was a brief consolidation, which ended in July. Then, before the open interest began to rebound in August, there was another period of consolidation. This indicates that the consolidation period is not always long, but at the end of the consolidation period, the open interest always tends to rise again, which corresponds with the price increase.
From the current perspective, if the open interest of Bitcoin and Ethereum reaches a new high again, it may indicate that their prices are also ready to hit new highs. According to the trend of the past few months, the open interest may start to rise again at the end of September, driven by the price increase.
Conclusion
The open contract volume of Bitcoin and Ethereum remains high, reflecting the sustained bullish market sentiment and strong interest from traders. Historical patterns indicate that after a brief consolidation, a rise in open contract volume is often accompanied by a simultaneous price increase. If this trend continues, we have reason to expect that the prices of these two major Crypto Assets may usher in a new round of pump in the near future, and may even break through previous historical highs.