Open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) has hit $5.2 billion, which is getting close to the all-time high set in late October 2021.
Open interest in CME’s Bitcoin futures rose from $3.63 billion to $5.20 billion in the last 30 days, which is the same amount of money that Bitcoin gained (26% in that time). Bitcoin is now selling just above $44,000. The price of Bitcoin went from $45,000 to $66,000, which is about the same time as this rise in open interest.
Tony Sycamore, an expert at IG Australia, said that the rise in open interest shows that people are interested in Bitcoin again. He did stress, though, that it does not show how CME players are positioned.
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According to CME’s report from November 28, Sycamore said that big players were net short at the time, with 20,724 short positions and 18,979 long positions. The expert hopes to have a better understanding of where things stand now after CME’s latest report comes out on December 12.
Sycamore said that the recent rise in Bitcoin’s price isn’t just due to rumors about the SEC possibly approving spot ETF products. He thinks that crypto’s relationship with the larger economy has a bigger effect. Investors think that the Federal Reserve’s recent decision to start lowering interest rates is a big reason why Bitcoin’s price is going up and down.
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In November, CME passed Binance to become the leader in open interest for Bitcoin futures. This shows that traditional financial companies are becoming more interested in crypto products. Many experts think that the price of Bitcoin will go up quickly if a spot ETF is approved.
However, there are worries about how long the current rally will last, and some are predicting that people will “sell the news” after an approval.
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