Bitcoin futures have experienced a significant surge in open interest, climbing nearly 10% as the cryptocurrency’s price edges closer to the $110,000 milestone. On July 2, data from Velo indicated that open interest in perpetual futures listed on offshore exchanges reached $26.91 billion—the most dramatic daily increase since March. This uptick comes as Bitcoin’s price increased by over 3.5%, trading at around $109,600, fueled by a mix of economic and geopolitical factors.
A Perfect Storm for Bitcoin
The impressive rise in Bitcoin’s value coincides with several converging events. The U.S. ADP jobs report fell short of expectations, stoking speculation about potential interest rate cuts by the Federal Reserve. Concurrently, former President Trump’s trade agreement with Vietnam has sparked optimism in global trade dynamics. Adding to the mix, the recent launch of the REX-Osprey Solana + Staking ETF (SSK) has apparently invigorated market sentiment further. As explored in Bitcoin bulls gain edge, target $110K ahead of $20B monthly options expiry, these developments have set the stage for a potential breakout.
According to crypto analyst Rachel Kim, these developments have collectively created a “perfect storm” for Bitcoin’s price rally. “The market’s reacting not just to one event but a series of catalysts that are aligning to boost confidence,” she explained.
Perpetual Futures and Liquidations
The surge in Bitcoin’s value has had a ripple effect on the perpetual futures market. Notably, perpetual funding rates for both Bitcoin (BTC) and Ethereum (ETH) have risen from an annualized 5% to over 7%, indicating a strong appetite for leveraged bullish bets. Meanwhile, funding rates for Dogecoin (DOGE) and Cardano (ADA) have surpassed 10%, demonstrating the burgeoning interest across various cryptocurrencies.
However, it’s not all smooth sailing. The rally has resulted in $300 million in liquidations—primarily short positions—due to margin calls. Coinglass data reveals that in the past 24 hours alone, 107,604 traders faced liquidations, with the largest single order exceeding $2.32 million on Hyperliquid. This trend aligns with Bitcoin Nears $108K as Fed Rate Cut Bets Rise; Traders Eye Ether, Solana, Cardano, highlighting the broader market dynamics at play.
“Such liquidations are a double-edged sword,” noted Samir Patel, a derivatives analyst. “While they indicate market exuberance, they also raise questions about the sustainability of the current trend.”
Historical Context and Future Implications
Historically, a rise in open interest along with price increases is seen as a confirmation of an uptrend. Yet, one can’t ignore the lessons of past volatility. Bitcoin’s journey has been marked by dramatic highs and lows, often driven by external macroeconomic factors and investor sentiment.
Looking ahead, the question remains whether Bitcoin will maintain its momentum above the $110,000 threshold. Market watchers are keenly observing how upcoming economic data and geopolitical developments will influence the cryptocurrency landscape.
While the current trajectory appears bullish, seasoned investors know that the crypto market’s inherent volatility demands caution. “It’s crucial to stay informed and remain agile,” advised Patel. “The market can turn on a dime, and being prepared for any eventuality is the hallmark of a savvy investor.”
As Bitcoin continues to attract attention, both from fervent supporters and skeptical critics, its path will undoubtedly be a topic of intense scrutiny and debate in the weeks and months to come. The crypto community will watch with bated breath to see if Bitcoin can break new ground—or if it will face yet another twist in its storied journey.
Source
This article is based on: Bitcoin Futures Open Interest Surges Nearly 10% as BTC Eyes $110K
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
