Bitcoin futures open interest has surged significantly since Donald Trump’s presidential election win on Nov. 5, jumping from $39 billion to $60.9 billion, according to Coinglass data. This sharp rise reflects heightened trading activity and increased market speculation.
Bitfinex analysts attribute the growth in open interest to organic demand, driven by expectations of bitcoin price appreciation. They view the recent build-up in leveraged positions as typical market behavior, with institutions and traders positioning for anticipated price movements. The analysts also noted a minor decline in open interest around the $94,000 mark, describing it as part of a normal pullback when significant orders are filled.
Gracy Chen, CEO of Bitget, believes Trump’s election victory has been a major driver of the heightened leverage. She suggests that investors are optimistic about a more favorable regulatory and economic environment under Trump, which could support bitcoin’s growth. However, Chen also cautions that bitcoin’s volatility could lead to corrections, such as long squeezes, which might serve to stabilize the market if leverage becomes excessive.
Despite the substantial increase in leveraged trading, analysts remain unconcerned about the risk of an immediate market correction, emphasizing that the current activity reflects healthy market dynamics rather than speculative overheating.