Crypto Market Eyes $4 Trillion as Open Interest Hits Record High

Crypto market nears $3.73 trillion, aiming for $4 trillion.

Market Open Interest hits a record $171 billion as risk-on mentality returns.

Crypto market liquidations exceeded $1 billion in the previous 24 hours as Bitcoin approached $120,000.

Bitcoin's (BTC) apparently unstoppable march toward $120,000 drives the cryptocurrency market to green for the fourth straight day on Friday. Bitcoin is over $118,000, driving futures market Open Interest to record highs and short liquidations over $1 billion in the previous 24 hours. Bullish market sentiment might push crypto market valuation beyond $4 trillion.

Bitcoin over $118,000 boosts market optimism
After the Fed's minutes on Wednesday, Bitcoin's positive momentum may have been fueled by increased expectations of interest rate decreases.

At press time on Friday, CoinGlass reported $171.65 billion in crypto futures market Open Interest (OI) and $81.36 billion in BTC OI.

Capital inflows in the futures market, spurred by increasing purchasing activity, fuel the OI spike, which may be encouraging for sidelined investors.

Together with growing OI, crypto market liquidations hit $1.25 billion in the previous 24 hours, shaking off bearish holdings worth $1.12 billion compared to $131.44 million of long positions.

Overall, higher Open Interest and the wipeout of negative positions signal growing futures market confidence, which might lead to a leverage-driven rally.

Crypto industry sees $4 trillion value as bullish momentum rises
On Friday, Bitcoin's climb to a new high boosted the crypto market capitalization to $3.62 trillion, with BTC accounting for almost 64%. The optimistic crypto market is approaching its December 17 peak of $3.73 trillion.

CoinMarketCap's Fear and Greed Index, at 67, implies investor greed is rising.

In eight months, crypto market value might set a record if the trend continues. Investors might see more market inflows, boosting the value above $4 trillion, matching NVIDIA's market cap


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