Open Interest Growth in Cryptocurrency Market: US Corporates Take Action
Amid the strong growth of the cryptocurrency market, open interest in Bitcoin (BTC) and Hyperliquid (HYPE) recorded a surge. Specifically, BTC's open interest reached $3.56 billion, while HYPE's was $1.29 billion, reflecting the growing interest from institutional investors.
This increase was in line with a peak trading volume of $21 billion, accompanied by a steep accumulation curve. What is driving this trend? The $844 million inflows from US companies may have been the main catalyst, creating a huge wave of expectations and financial leverage in the market.
Source: Hyperliquid Statistics
Moves by major financial institutions signal bigger bets
The gradual increase in open interest reflects hedging or position adjustment by large players in emerging markets such as BTC and HYPE. These moves may predict increased volatility and directional momentum due to the liquidity of institutional investors.
BTC and HYPE are currently at the center of reserve funds and high volatility trading strategies. To that extent, they are likely to become mainstream instruments during this liquidity expansion phase.
The position of whales in the BTC and HYPE market
On-chain data shows that large whales have been continuously buying both HYPE and BTC.
Specifically, address 0x55 purchased 59,719 HYPE worth $2.31 million at a price of $38.68 per HYPE. Address 0xe6 also purchased 53,645 HYPE at $39.30, spending $2.11 million. These positions were opened with long orders and leverage of 10x on HYPE and 20x on Bitcoin, signaling strong confidence in the growth of these assets.
Source: Onchain Lens Statistics
The large volume of purchases, combined with the use of long-term leverage to fight for life, is a sign of a positive trend going forward. It is especially noteworthy for the cryptocurrency market, as institutional investors increasingly enter the sector, promoting the possibility of sustainable development in the long term.
Price action warning: Temporary profit taking
Technically, HYPE remains healthy. Despite the strong inflow of large-cap money from sharks, HYPE’s weekly RSI shows a slight bearish divergence, signaling a possible temporary correction. Although it is only a short-term rebalancing pattern, the market structure clearly shows the ability to hold steady in the context of rapid growth.
Last year’s breakout has helped the market structure hold up, although the RSI suggests a short-term respite may be in order. Fundamentals remain positive, particularly with hundreds of millions of dollars in share buybacks absorbing cash flow out of profits.
Source: CRG/X
The Shark's Retreat and Calculated Profit-Taking Strategies
During a sharp correction, a large whale made a net sale of 126,772 HYPE, worth $5.31 million, at a price of $42 per HYPE. This profit-taking resulted in a profit of nearly $2.89 million, clearly demonstrating strategic profit-taking rather than panic selling.
This reflects a controlled exit trend, especially in strong price areas, suggesting a more positive sentiment rather than panic selling. However, short-term positions are still risky in a market as driven as HYPE unless the negative trend continues. Despite signs of consolidation, whales are still weighing the balance between exiting and re-entering while the market remains strong.
Source: https://tintucbitcoin.com/bitcoin-and-hype-chuan-bi-bung-no/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
