Key Highlights:

• The open interest in bitcoin perpetual futures saw a notable increase of nearly 10% on Wednesday.
• Bitcoin’s price had a significant rise of over 3.5%, reaching $109,600, influenced by factors including a poor U.S. ADP jobs report and the introduction of a new ETF.
• This upward trend in prices resulted in approximately $300 million in liquidations, primarily impacting bearish positions.

Open interest, which indicates the total number of outstanding contracts in derivatives, rose by nearly 10%, totaling $26.91 billion on offshore exchanges. This marks the highest daily increase since early March, based on data from Velo.

BTC’s price rally correlates with broader market sentiments, including lower-than-expected job creation in the U.S., which fuels speculation about possible Federal Reserve rate cuts and positive market responses to various ETF launches.

The increase in open interest alongside price gains is often seen as a validation of the current bullish market trend. Furthermore, perpetual funding rates for BTC and ETH have shown slight increases, suggesting a renewed interest in leveraged trading strategies. Notably, forced liquidations within the past day reached approximately 107,604 traders, with significant positions forced to close due to margin calls.