Bitcoin On The Brink Of Collapse: Speculation Is Exploding!

Bitcoin seems to be at a crossroads. As crypto approaches 70,000 dollars, a speculative frenzy is developing in the shadows. A phenomenon that could very well turn against it in the short term. With the explosion of open interest in the futures markets, BTC is in a high-risk situation. The question is: will the current bullish momentum hold up against this rampant speculation?

A tense rise in the price of bitcoin

Bitcoin crossed the threshold of 69,500 dollars on October 21, a milestone marked by euphoria. However, behind this spectacular rise, doubts are beginning to emerge. This level had not been reached for months, and market participants are more nervous than ever.

The political context, particularly the potential impact of the U.S. elections, seems to play a major role. Some analysts even mention a correlation between the rise of bitcoin and Donald Trump’s chances of winning the presidential election.

But beware, this skyrocketing price is not without risk. Indeed, open interest (OI) on futures contracts has reached historic highs.

However, such an increase in open positions is not always synonymous with stability for bitcoin. If traders’ speculations do not materialize, a brutal correction could hit the market, reversing the current bullish momentum.

The snowball effect of open interest

As indicated by the report, the explosion of open interest is not just a simple technical detail.

In theory, high OI reflects growing optimism, but here, it could provoke an opposite effect. If the spot market does not follow the expected bullish momentum, we could witness a bitcoin correction of unexpected violence.

The market then becomes vulnerable to what is called a “short squeeze,” where open positions are liquidated in cascade, increasing volatility.

The most worrying thing is that the fundamentals seem to be eclipsed by this speculation. The more the market inflates with unfulfilled promises, the more severe the crash could be.

The coming days will therefore be decisive in determining whether Bitcoin will break through this resistance or if it will experience a return to reality that could shake the entire market. Some still hope to see bitcoin at 80,000 dollars.