Two Major Signs That Bitcoin Bull Cycle is Still Early

Key metrics such as a surging Bitcoin open interest and low Google search interest signal that Bitcoin could rally substantially, as the cycle is still early.

Bitcoin is approaching its all-time high of around $74,000 after the recent spike over the last seven days. For context, the asset has rallied over 10% in the past week, reaching a three-month price high above $68,000 on Wednesday.

With analysts expecting the asset would reach its ATH before the November US election, the appreciation seems miniature compared to the potential rally Bitcoin could pull off eventually. Notably, two metrics show that the Bitcoin bull cycle is still nascent.

Market Participation Surges to ATH

Data from Coinglass shows that the open interest of the largest cryptocurrency by market cap has surged to new highs, hitting $39.67 billion on Thursday. Notably, this metric tracks the number and value of open derivatives and options positions on the premier crypto asset at a determined span.

The amount of funds actively traded on the Bitcoin market surged to $39.67 billion, surpassing yesterday’s high of $37.77 billion. This indicates increased interest and participation among traders, reinforcing bullishness.

Meanwhile, the Chicago Mercantile Exchange (CME) leads Bitcoin trading activities among other exchanges, providing liquidity worth $12.25 billion. Notably, being the largest futures exchange, CME accounts for more than 30% of the total derivative activities on the premier crypto asset.

Among traditional crypto exchanges, Binance, the largest platform by trading volume, commands a considerable amount of liquidity. Traders have opened about $8.08 billion worth of Bitcoin trading positions on the platform, accounting for 20% of the total derivative participation.

Furthermore, other notable exchanges, like Bybit and OKX, have billions of dollars in derivative positions opened on them, while Coinbase and Crypto.com provide liquidity in millions.

It bears mentioning that a spike in appetite for leveraged Bitcoin trading in such a manner precedes a corresponding price uptrend. This trend was apparent in the April and November 2021 spikes, with Bitcoin surging to its previous all-time high of $69,000 in the latter.

Bitcoin Search Interest Paints Bullish Bitcoin Picture

A further bullish Bitcoin scenario is evident in the miniature searches associated with the leading crypto asset. Data shows that the number of internet look-ups with the keyword “bitcoin” is nearing its all-time low despite Bitcoin approaching its all-time high.

Historically, search interest for Bitcoin spikes extensively as bull cycles mature. For instance, internet queries involving “bitcoin” surged to their peak popularity of 100 in November 2021, when Bitcoin touched $69,000.

Notably, surging interest signals the presence of retail traders, popularly speculated to be the market top. With the interest index still below 25, Bitcoin’s popularity and bull run are historically still in their early stages.