Bitcoin open interest, or the value of outstanding futures contracts, reached a record high of $40.5 billion on October 21, indicating increased leverage and potential volatility in the market. The Chicago Mercantile Exchange (CME) had the largest share of open interest, followed by Binance and Bybit.

If prices move sharply during periods of high open interest, it can trigger cascading liquidations and force selling in the spot market, leading to sudden price drops. A similar flush-out occurred in early August, causing Bitcoin prices to drop almost 20% in less than two days.

Despite reaching a high of $69,380 earlier on October 21, Bitcoin faced resistance and pulled back slightly, currently trading around $69,033. Altcoins like Ether and Solana outperformed Bitcoin in terms of daily gains, but have also experienced pullbacks. Show Less