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    Bitcoin open interest exceeds $40B amid brush near $70K

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    On October 21, Bitcoin exceeded 70K. According to CoinGlass, open interest in Bitcoin reached a high of $40.5 billion, indicating increasing risks may lead to larger price fluctuations. Major contributors to this were Chicago Mercantile Exchange, Binance, and Bybit, contributing 31%, 20%, and 15% respectively. Notably, excessive risk can lead to mass selling and dramatic price drops. The cryptocurrency reached nearly $69.4K, around 6.5% away from its highest ever figure. Other cryptocurrencies such as Ether and Solana could also benefit if Bitcoin breaks the $70K barrier, despite showing a small decrease from recent highs.

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    Alright peeps, for those of you who didn’t know, Bitcoin’s pretty much pushed past 70K on October 21. Crazy stuff, right?

    CoinGlass hit us with the details on the same day: outstanding bets on Bitcoin’s future prices, also known as open interest, reached a mad high of $40.5 billion. Basically, it’s an indicator of all the money being risked on Bitcoin’s direction at any time. Larger amounts suggest more risks might be getting taken and we could see more wild price movements.

    To give you an idea of who’s making big bets – Chicago Mercantile Exchange had the lion’s share with about 31%, Binance had 20% and Bybit got around 15%.

    But keep in mind, guys – when there’s tons of money at risk, wild price movements can trigger one person after another needing to sell, creating a ripple effect or a ‘flush out’. This can lead to serious drops in Bitcoin’s price. We saw this before in early August when Bitcoin fell almost $12,000 in less than two days.

    Still, Bitcoin’s having a good run right now. It hit almost $69.4K in the early hours of Oct. 21, but dipped down to roughly $69K when we last checked. Not much of a dip, which means it’s around 6.5% away from its record high of almost $73.7K.

    Just a side note that if Bitcoin busts out above $70K, it could really give other cryptocurrencies like Ether and Solana a boost. Both are doing quite well, with Ether climbing 3.5% to just over $2.75K and Solana increasing 6% and almost touching $170. Though, they’ve backed off a bit since their highs. Stay tuned, and keep your eyes peeled on this crazy ride.

    Source: Cointelegraph

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