Bitcoin and Ethereum Open Interest Nears All-Time Highs—Here’s What Unfolded Last Time

Crypto markets are buzzing as open interest for Bitcoin and Ethereum flirts with record-breaking levels. Traders are placing big bets—but will history repeat itself?

When Leverage Peaks

Massive open interest signals two things: rampant speculation and potential volatility. Last time these levels hit, the market saw explosive moves—both up and down. Liquidity flooded in, then whipped right back out when positions got squeezed.

Traders Stack Positions

Futures and options activity suggests institutional and retail are both all-in. High open interest doesn’t guarantee a direction—it just means more fuel is in the tank.

Regulators Raise Eyebrows

Watch for increased scrutiny when derivatives activity spikes. Nothing gets traditional finance clutching its pearls faster than crypto traders having too much fun with leverage.

Will This Time Be Different?

Market structure’s evolved, but human psychology hasn’t. Greed and fear still drive the cycles—even if the players wear suits now. One thing’s certain: it won’t be boring.

Bitcoin And Ethereum Open Interest Remain Very High

Toward the end of the month of August, the ethereum price began rising rapidly, fueled by large buys from Ethereum treasury companies such as Bitmine and SharpLink. This push would eventually see the Ethereum price reach a brand new all-time high, beating out its $4,800 peak from 2021 after climbing above $4,950.

In the same vein, the open interest had risen rapidly, and this metric, too, rose to new all-time highs. By August 23, amid the frenzy, the Ethereum open interest climbed above $70 billion for the first time in history, marking a major milestone. Since then, the Ethereum open interest has retraced. But it is still sitting above $55 billion at the time of this writing, suggesting that interest in the altcoin is still high.

While the Bitcoin open interest did not hit new peaks in the month of August like Ethereum, it also remained at very high levels. Data from Coinglass shows that the Bitcoin open interest is still averaging at a high $80 billion, still close to the $86 billion all-time high that was recorded back in July.

What The Open Interest At ATHs Could Mean

Looking at previous performances when the bitcoin and Ethereum open interest have been at all-time high levels, there is usually a period of consolidation that follows, especially as price retraces. This was seen after the first all-time highs of the year back in February, which was followed by a few months of consolidation.

Then again, the peaks in June were followed by short consolidations, which ended in July. And then, another consolidation before the open interest started to rebound in August. This shows that the period of consolidation is not always long, but at the end of it is always another rise in open interest that coincides with a rise in price.

From here, if the Bitcoin and Ethereum open interest were to hit new peaks, it WOULD probably mean that their prices are ready to hit new highs as well. Following the trend of the last few months, the open interest could start to pick up again toward the end of September, propelled forward by price recoveries.