Bitcoin's price surge stops: Analysts point to weak open interest and consumer price index pressure
The surge in Bitcoin's price to $112,000 quickly faded, revealing weak open interest and declining funding rates that suggest a loss of momentum
Bitcoin (BTC) briefly rose to just under $112,000 on Monday before falling to around $107,700, indicating that recent gains may be losing steam.
This move followed a recovery over the weekend from a level below $104,000, but analysts are now warning that weak derivatives activity and upcoming U.S. inflation data could lead to further disruptions.
Short-term rise reveals market exhaustion
Initially, the rise in price from $106,000 to nearly $112,000 appeared positive, but an assessment by analyst CryptoMe, shared on social media on October 21, shows that key market metrics tell a different story.
According to the market expert, total open interest, which reflects the total number of outstanding derivatives contracts, did not significantly increase during Bitcoin's price rise. CryptoMe interpreted this as a sign of weak interest in opening new leveraged positions.
