{"id":6549,"date":"2025-08-21T05:00:32","date_gmt":"2025-08-21T05:00:32","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/more-pain-for-bitcoin-open-interest-surpasses-40-billion-as-longs-crowd-in\/"},"modified":"2025-08-21T05:00:32","modified_gmt":"2025-08-21T05:00:32","slug":"more-pain-for-bitcoin-open-interest-surpasses-40-billion-as-longs-crowd-in","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/more-pain-for-bitcoin-open-interest-surpasses-40-billion-as-longs-crowd-in\/","title":{"rendered":"More Pain For Bitcoin? Open Interest Surpasses $40 Billion As Longs Crowd In"},"content":{"rendered":"

After hitting a new all-time high (ATH) of $124,474 on Binance on August 13, Bitcoin (BTC) has tumbled toward $113,000, with the next major support zone around $110,000. Analysts warn that more downside could still be ahead for the top cryptocurrency.<\/p>\n

Bitcoin To Fall More? Crowded Long Trade Gives Hint<\/h2>\n

According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, Bitcoin open interest across all exchanges has surged past $40 billion, nearing ATH territory. This rise shows both whales and short-term traders are piling into leveraged positions.<\/p>\n

The chart below highlights the recent spike in BTC open interest, now hovering at $40.6 billion. Compared to August 2024 levels of $15 billion, open interest has grown by more than 150%.<\/p>\n

\"open<\/p>\n

The CryptoQuant contributor added that despite this surge, the funding rate has remained positive, showing a strong long bias. While this reflects market optimism, it also signals a crowded trade, with most participants betting on further BTC appreciation.<\/p>\n

\"funding<\/p>\n

As a result, the risk of a long squeeze – forced liquidations of long positions due to aggressive leverage – has risen. XWIN Research Japan explained in their analysis:<\/p>\n

\n

A sudden price drop can trigger a cascade of forced selling, amplifying volatility. In other words, Bitcoin\u2019s short-term moves remain at the mercy of speculative flows.<\/p>\n<\/blockquote>\n

BTC Fund Holding By Institutions Rises<\/h2>\n

Despite speculative froth from excessive leverage in the market, BTC fund holdings by Bitcoin exchange-traded funds (ETFs) and institutional investors continue to surge, exceeding 1.3 million according to latest data.<\/p>\n

\"fund\"<\/p>\n

Spot ETFs and corporate treasuries absorbing BTC provides the digital asset a structural bid that steadily reduces its available supply. According to data<\/a> from SoSoValue, US-based spot Bitcoin ETFs currently hold $146 billion in net assets – representing 6.47% of BTC\u2019s market cap.<\/p>\n

That said, this week alone has seen more than $645 million in outflows from spot Bitcoin ETFs, following two consecutive weeks of inflows totaling nearly $800 million. Among the ETFs, BlackRock\u2019s IBIT leads with $84.78 billion in net assets as of August 19.<\/p>\n

Still, not all signals are bearish. For instance, while BTC slipped below $115,000, its spot trading volume surged past $6 billion, giving bulls hope for a potential rebound.<\/p>\n

Similarly, technical analyst AO recently suggested that BTC could be mirroring gold\u2019s trajectory, with an ambitious target of $600,000 by early 2026. At press time, BTC trades at $113,845, down 1.5% in the past 24 hours.<\/p>\n

\"bitcoin\"<\/p>\n","protected":false},"excerpt":{"rendered":"

After hitting a new all-time high (ATH) of $124,474 on Binance on August 13, Bitcoin (BTC) has tumbled toward $113,000, with the next major support zone around $110,000. Analysts warn that more downside could still be ahead for the top cryptocurrency. Bitcoin To Fall More? Crowded Long Trade Gives Hint According to a CryptoQuant Quicktake…<\/p>\n","protected":false},"author":1,"featured_media":6550,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[22,2794,1365,3140,28,32,36,51,254,255,530],"class_list":["post-6549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-funding-rate","tag-bitcoin-leverage","tag-bitcoin-long","tag-bitcoin-news","tag-btc","tag-btcusdt","tag-crypto","tag-cryptocurrency","tag-digital-asset","tag-open-interest"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/6549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=6549"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/6549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/6550"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=6549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=6549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=6549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}