Bitcoin Surges to $86,500 with Higher Leverage Costs
Bitcoin's price has reached $86,500, marking a significant increase from its previous level of about $83,500 on September 30. This rise in price is accompanied by an increase in open interest, which represents outstanding futures contracts. According to CoinDesk's analysis based on CoinGlass data, activity in Bitcoin's derivatives market increased ahead of the U.S. jobs report.
The total dollar value of positions reached $56.2 billion after an increase of about 27,000 BTC, or 4.3%, in open interest. This indicates that new positions are accompanying the move, and the rise in funding costs points to stronger demand for bullish positions. In perpetual futures, funding is a periodic payment between holders of long and short positions.
The recent increase in funding costs shows that investors are willing to pay more to maintain their bullish positions. However, if Bitcoin sees a sudden pullback, leveraged investors could face position-holding costs in addition to price losses. The recovery began near one-year lows, with open interest standing at about 625,000 BTC at the end of September.