$4.2 Billion in Open Interest Floods BTC and ETH: A New Wave of Bullish Momentum

The cryptocurrency market is reigniting as Bitcoin (BTC) and Ethereum (ETH) break through key technical resistance levels, sparking renewed confidence among investors. On November 3, significant price movements were accompanied by massive short liquidations and a striking surge in open interest (OI), indicating a robust inflow of capital. This marks a progression beyond a mere technical bounce, pointing instead to substantial strategic reentry into the digital asset market.

$395.35 Million in Liquidations Over 24 Hours: Shorts Dominate

In the past 24 hours, the crypto derivatives market recorded an astonishing $395.35 million in liquidations, according to data from Coinglass’s Liquidation Heatmap. Short positions made up a whopping 68% of these liquidations, totaling $268.55 million, as the bullish breakout blindsided short sellers.

Ethereum led the charge with a 3.58% price increase as it surged to $4,542.5, triggering $89.05 million in short liquidations. Bitcoin wasn’t far behind, climbing 1.26% to surpass $12,334, resulting in $79.57 million worth of short liquidations. Both these breakout moves were key contributors to the bullish sentiment coursing through the market.

Open Interest Explodes by $4.2 Billion: Signals of Bullish Confidence

Open interest—an indicator of fresh capital entering the market—has surged substantially, further consolidating the bullish narrative. Coinglass data shows that Ethereum’s OI skyrocketed by $2.31 billion in a single day, equivalent to approximately 3.12 trillion KRW. Bitcoin followed closely, with OI increasing by $1.92 billion, or about 2.59 trillion KRW.

This sharp rise in OI indicates new investors are entering the market, rather than simply covering previous short positions. It also signals strong market confidence in sustained upward momentum.

Interestingly, other prominent altcoins mirrored this trend. Solana (SOL) saw its OI expand by $528 million, reflecting a 3.78% increase, while Binance Coin (BNB) saw an extraordinary 14.45% surge, adding $269 million to its OI. On the flip side, some assets like XRP (-10.41%) and SUI (-3.95%) experienced declining open interest, highlighting profit-taking behavior.

Altcoins Lead the Short Liquidation Wave

The altcoin market witnessed significant short liquidations as bullish momentum swept through. Solana led this segment with $17.51 million in liquidations, closely followed by Dogecoin (DOGE) at $6 million and XRP (Ripple) at $4.48 million. This underscores mounting short squeezes in mid-cap altcoins, further reflecting the broader bullish shift.

Other notable liquidation events included BNB, which saw $6.97 million liquidated, and SUI at $980,000 as prices spiked, forcing short traders to exit their positions.

One striking example was Ethereum’s concentrated short liquidations, which reached $21.88 million in just one hour. Across time spans, the liquidation activity was relentless: $32.71 million over one hour, $254.31 million over 12 hours, and a cumulative $395.35 million over 24 hours. These numbers illustrate consistently strong upward pressure and an entrenched bullish bias throughout the day.

Shifting Market Sentiment: From “Bounce” to “Reentry”

Analysts and market participants are now interpreting this rally as more than a technical rebound. The confluence of price gains, massive liquidations, and record-breaking open interest growth reflects a shift toward sustained market reentry.

One market observer noted, “The addition of $4.2 billion in open interest for BTC and ETH alone signifies a strong trend expansion likely fueled by leveraged positions.” This new wave of capital inflows—not merely position unwinding—adds credence to the narrative of a potential reversal from bearish to bullish territory.

The derivatives market also hosted notable events, including the largest single liquidation of a BTC-USD position at Hyperliquid Exchange, valued at $6.56 million.

Sustained Growth on the Horizon?

This influx of capital, combined with liquidation-driven upward price pressure, suggests that market participants anticipate prolonged growth in the cryptocurrency space. With leveraged positions amplifying price trends, the current bullish momentum could potentially establish the groundwork for sustained recovery and further market expansion.

As BTC and ETH set the tone, the evolving interplay of open interest growth, liquidations, and price action makes the case for a fundamentally positive outlook on the future trajectory of digital assets.