🔥 Altcoin Frenzy: OI Breaks Records Amid Bitcoin Chill

The all-time high of $47 billion in altcoin futures open interest suggests significant leverage and larger price fluctuations.
Bitcoin's dominance fell from 65% to 59% in two months.

Bitcoin's implied volatility remains low after a $120K comeback.

According to Glassnode, cryptocurrency futures open interest (OI) reached a record $47 billion on Tuesday due to fast price rises. Bitcoin's (BTC) at-the-money implied volatility (ATM IV) has fallen, which usually precedes price fluctuations.

Strong altcoin performance while Bitcoin volatility stays low
According to Glassnode, the futures OI of key cryptocurrencies touched a record of $47 billion on Tuesday, indicating price movement in the crypto market.

Open interest rose as Ethereum rose beyond $4,500 on Tuesday, leading the altcoin market.

Over the previous two months, Bitcoin's Dominance Metric dropped from 65% to 59%, indicating a capital shift into altcoins.

Bitcoin is above $120,000, near its all-time high of $123,091 after falling last week.

With 95% of investors still in profit and unrealized gains, Glassnode suggests that the resumed upward trend may signify a new price discovery period.

Bitcoin's at-the-money implied volatility (ATM IV) has steadily declined in the options market, suggesting traders are not pricing in a high-volatility scenario.

"While these conditions can persist, they leave the market exposed to sudden volatility spikes if a catalyst emerges, as past cycles have shown through sharp, disorderly price swings when risk is rapidly repriced," said Glassnode.

For Bitcoin's upside goal, Glassnode employs the Short-Term Holder Cost Basis, which suggests $127,000 as the first big obstacle. Bitcoin might hit $144,000 if it breaks over this level, according to the research.

However, utilizing the +1 standard deviation threshold for Active Realized Price, the analysis suggests $4,700 as ETH's near-term barrier.


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