Open interest in Bitcoin falls – ETH and SOL remain stable

Due to the price drop and market uncertainty, Bitcoin’s open interest has fallen by 7.5 percent. Traders are looking for alternatives and new opportunities. Is this the beginning of a resurgence for altcoins like Ethereum and Solana?

After market crash: Open interest of altcoins cushions the crash better

At the moment, things are not looking particularly good for Bitcoin. After the price drop and market uncertainty in recent weeks, investors have shifted their capital into altcoins. The total open interest on the stock exchange for Bitcoins has fallen by 7.5 percent. The open interest represents the total number of all open contracts for options or futures. This is how the trading activity of a market can be determined.

Ethereum (ETH) and Solana (SOL) are experiencing an upswing at this point. After the crash from August 4th to 5th, Ethereum’s open interest rose by around 23 percent, and Solana’s by around 45 percent. Bitcoin, on the other hand, is having difficulty reaching the last high before the market crash – including in terms of price. It is currently trading at around 62,500 USD. A decline of 2.31 percent compared to the previous day. It had previously traded at more than 70,000 USD.

Will the reallocation of capital in altcoins lead to a resurgence?

It seems that investors are shifting their capital into altcoins like Ethereum and Solana to both generate higher returns and mitigate risks. This search for new diversified opportunities is causing ETH and SOL to surge. The data suggests that a capital shift from Bitcoin to altcoins could be taking place.

But how does this affect the market? One thing is clear: a concrete forecast can never be made. Cryptocurrencies are too volatile for that. However, some analysts believe that an alt season could be imminent. Altcoins such as Ethereum and Solana would experience a strong increase in value compared to Bitcoin.

Crypto exchanges with the lowest fees 2024

Author
Recent Posts

Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

Latest posts by Margharet Tess (see all)