Bitcoin futures (BTC) trading has been at a high level since July 21, when both the Chicago Mercantile Exchange and Bakkt witnessed significant increases in volume and opened interest in contracts. The emergence of BTC futures comes when the market value of the largest coding guns by market value reached a new high in 2020.
Two months after the events doubled in May 2020, BTC began showing signs of expected bullish progress. Bitcoin usually sets a new high within a year after cutting support to reward BTC optimists who say the trend will continue.
Amid the bitcoin's current positive price movement, bullish sentiment appears to be gaining momentum in the BTC futures market. Longs outperforms short positions today by 9 to 1, meaning that any significant negative rebound could lead to a series of optimistic bets, especially for long-term traders. In mid-March 2020, the market scare caused by the COVID-19 Bitcoin pandemic fell to $ 3,800. The drop triggered a series of forced liquidations, especially on derivatives exchanges such as BitMEX.
Bitcoin price reaches new peak of 2020
The rise in BTC prices comes amid a series of positive news for the crypto region with the US Foreign Exchange Monitoring Office, so that national banks can provide crypto-saving services. Large economies have also moved to stimulus packages to mitigate the disruptions caused by the Coronavirus pandemic. European Union leaders have already approved a $ 2 trillion spending plan. The US dollar, and roughly half of the amount allocated is intended to support the economies most affected by COVID-19. In the United States, lawmakers are working on a new round of stimulus payments that could reach $ 3 trillion.
With the US Federal Reserve printing more money in one month than in the past 200 years, investors seem concerned about hedging against the after-risk of the devaluation. This offer appears to offer significant hurdles for the port sectors like BTC and Gold. Bitcoin's rise to a new high of 2020 also coincided with gold, setting a new record price per ounce. The precious metal is already close to surpassing $ 2,000, and silver has also reached its highest level in seven years.
CME BTC forward interest rates set new all-time highs
As mentioned earlier by Cointelegraph, open interest in bitcoin futures is growing in line with the remarkable growth in the spot market. According to Skew's Crypto Derivative Analysis Platform, CME BTC futures are in open interest at $ 740 million.
CME BTC Futures
A week after Black Thursday, open interest on CME Bitcoin futures fell to nearly three-month lows. However, with the spot price recovering in the following weeks, there was interest in the CME BTC cash settlement forward until the first half of May. When the block bonus event didn't immediately raise the price, the OI dropped significantly again. At that time, cryptocurrency derivatives were liquidated almost $ 1.3 billion as the BTC price fell from the $ 10,000 support level to $ 8,600.
It may be interesting to note that while the OI is on the rise, trading volume has decreased significantly in the last days of July. The same trend is seen in Bakkt, with a huge interest rate of $ 22 million, but trading volume has been bearish for both cash and futures contracts virtually stable.
In fact, the rise in OI in Bitcoin futures represents a visual trend in the cryptocurrency derivative area in general. According to the second quarter of 2020 report, the TokenInsight market analysis platform showed that the OI in the cryptocurrency derivatives market grew from $ 2.62 billion to $ 5.53 billion in the second quarter of 2020. Typically, high OI and low volume indicate activity more at risk from actual trading . Often this scenario indicates that traders want to lower the Bitcoin price.
However, according to the analytics platform Datamish.com, the percentage of long and short trades almost reached their highest levels in 2020. This trend indicates that traders expect Bitcoin to have room for growth.