Bitcoin’s derivatives market reached a significant milestone on October 21, with open interest (OI) surpassing $40.5 billion, according to CoinGlass. This surge came as Bitcoin flirted with the $70,000 mark, briefly reaching $69,380. OI refers to the total value of outstanding futures contracts that remain active, serving as an indicator of leverage in the market.

• Bitcoin derivatives surpassed $40.5 billion on October 21, signaling high leverage. The Chicago Mercantile Exchange (CME) accounts for 30.7% of total Bitcoin futures open interest.

• Bitcoin briefly touched $69,468 before retreating to $69,033.Ether and Solana outperformed Bitcoin in daily gains, rising by 3.5% and 6%, respectively.

Exchange BTC Futures Open Interest | Source: CoinGlass 

CME led the market with 30.7% of total OI, followed by Binance and Bybit at 20.4% and 15%, respectively.

High open interest indicates elevated leverage, which introduces volatility risks. If the market experiences sharp movements, liquidations could cascade, forcing traders to sell and driving prices down quickly.

A similar event occurred in August when Bitcoin lost nearly 20%, or $12,000, within 48 hours, dropping below $50,000. Traders are now cautious, as another sudden move could repeat this scenario.

BTC/USDT price chart | Source: KuCoin 

Despite coming close to $70,000, Bitcoin faced resistance and pulled back slightly to $69,033. As of the time of writing, it trades just 6.4% below its all-time high of $73,738. Analysts suggest that breaking above this resistance level could trigger further bullish momentum.

Altcoins Also Gain Momentum: ETH Crosses $2,700, SOL Touches $170

ETH, SOL price charts | Source: TradingView

Bitcoin’s rally has also spurred growth in altcoins. Ether (ETH) rose by 3.5%, surpassing $2,750, while Solana (SOL) increased by 6%, reaching the key $170 mark. However, both assets saw slight pullbacks during trading hours.

Read more: Altcoin Season’s Here? AI Coins Surge, Worldcoin Leads Gains

Bitcoin’s recent price surge, nearing $70,000, is driven by favorable macroeconomic trends, institutional demand, and reduced supply. Central banks, including the Federal Reserve and ECB, are shifting toward relaxed monetary policies, with some already cutting interest rates. This has fueled investor appetite for higher-return assets like Bitcoin. Additionally, this year’s Bitcoin halving cut miner rewards in half, tightening supply and adding upward pressure on prices. Whale accumulation, mirroring pre-bull run patterns, further reflects growing investor confidence in Bitcoin's long-term value.

Institutional interest is also playing a pivotal role, with Bitcoin ETFs recording over $20 billion in inflows this year—outpacing gold ETFs, which took five years to reach similar levels. Market analysts believe this trend marks a new phase for Bitcoin’s mainstream adoption. Upcoming U.S. elections, continued bipartisan deficit spending, and China’s recent economic stimulus measures are also driving optimism across global markets. With these factors aligned, some experts, including Matt Hougan from Bitwise, predict Bitcoin is on track to hit $100,000 in the near future.

There is also some optimism in the crypto market owing to rising odds of Trump’s victory in the upcoming US Presidential elections. According to latest data on Polymarket, the odds of a Trump and Republican victory has spiked to 61% against Kamala Harris whose odds have dropped to 38%. With Trump being seen as pro-crypto, these odds have helped boost the mood among crypto traders. 

Market watchers expect Bitcoin to make another attempt at $70,000. Some analysts believe that breaking through this psychological barrier could “supercharge” the altcoin market, with assets like Ether and Solana benefiting from renewed investor confidence.

Bitcoin’s rising price and OI levels suggest that both retail and institutional investors are optimistic about further gains. However, traders should remain cautious, as sudden liquidations could disrupt the market, especially with the next major resistance level looming around $70,000.

Bitcoin’s journey toward $70,000 is attracting significant attention, with futures markets reflecting heightened leverage. While optimism remains, traders need to stay vigilant for potential market shocks. If Bitcoin clears the resistance, the path to new highs may open — but with volatility expected along the way, the market’s next move will be crucial.

Read more: 94% of Asian Private Wealth Considers Crypto Investing, Vitalik Buterin's Vision for “The Surge”, FBI Arrests SEC’s X Hacker: Oct 18