Open interest on Bitcoin derivatives has surged to a record $40.5 billion as Bitcoin approaches the $70,000 mark on October 21. This measurement indicates the total value of outstanding futures contracts, signifying increased leverage in the market. The Chicago Mercantile Exchange dominates with 30.7% of open interest, followed by Binance and Bybit. High open interest often leads to cascading liquidations during price fluctuations, which can cause significant sell-offs in the spot market. The most recent notable price drop occurred in early August, when Bitcoin fell by approximately 20%. As of October 21, Bitcoin traded at $69,033 after reaching $69,380 earlier, remaining just 6.4% below its all-time high of $73,738. Additionally, if Bitcoin surpasses $70,000, it may stimulate gains in altcoins such as Ether and Solana, which have been outperforming Bitcoin recently.

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