Bitcoin rallies above $122,000 as US buyers boost price momentum
- Bitcoin rose to $122,000 on Friday as the top cryptocurrency eyes its all-time high.
- US buyers have boosted the top crypto's momentum, with the Coinbase Premium GAP rising to $113.
- Bitcoin's open interest has also soared to a new all-time high, indicating a growing appetite for leverage.
Bitcoin (BTC) rallied above $122,000 on Friday as US traders pushed prices close to its all-time high, with open interest (OI) hitting a record $89 billion.
Bitcoin nears all-time high as spot demand and leverage bets rise
Bitcoin rose briefly above $122,000 on Friday, buoyed by increased spot demand and leverage among traders. The rise triggered $153 million in short liquidations in the past 24 hours as Bitcoin approaches its all-time high of $124,128, according to CoinGlass data.
US investors are largely responsible for the recent price growth, as evidenced by the Bitcoin Coinbase Premium GAP, which climbed $113 more than in other exchanges. This indicates that US investors are paying a higher price for Bitcoin on Coinbase compared to other exchanges, said crypto analyst Maartun in a Friday X post.
Institutional demand has also contributed to BTC's current momentum, with US spot Bitcoin exchange-traded funds (ETFs) experiencing inflows throughout the week. The products have seen $2.2 billion in net inflows since Monday, marking a shift in investor sentiment from the outflows of last week.
The rise in investor sentiment comes after the delay of the US September jobs report due to the government shutdown. The delay has sparked increased interest in crypto assets, leading to a rise in prices.
Traders have also shown increased appetite for leveraged risk, with BTC's open interest hitting an all-time high of $89 billion, according to CoinGlass data.
Bitcoin's open interest saw a reset following last week's options expiry, "clearing the board" of hedging activity and setting the stage for Q4, Glassnode stated in an X post on Friday.
The recovery in open interest now reflects more deliberate positioning on market direction and volatility.
Despite Bitcoin's regained momentum, the top crypto asset still lags gold and silver in year-to-date performance, Maartun added. Bitcoin has seen a 25.6% increase year-to-date, compared to Gold and Silver, which have grown 46.7% and 61.8%, respectively.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
