The aggregate open interest of Bitcoin futures markets increases to over $ 5 billion
In the past 60 days Bitcoin has skyrocketed and has fallen from a low of 6. 400 Dollar to a local high of 10. 500 Dollar recovered within two months.
Bitcoin's booming open interest could be bullish
In recent years, as institutional traders and more serious players have entered the Bitcoin market, the demand for future derivatives for the cryptocurrency has exploded. This has been confirmed by a report from The Block.
They reported that on 13. As of February, the total amount of open interest in Bitcoin futures contracts exceeded $ 5 billion as traders on BitMEX, OKEx, Bakkt, CME and other major platforms invested billions of dollars in the investment. This is well above the approximately $ 4 billion in January and the $ 2.5 billion in December.
Aggregated open interest for Bitcoin futures has surpassed $ 5 billion on Feb. 13, according to data compiled by The Block. https://t.co/qnHn2h5K91 pic. twitter.com/bnCo7ywTl6
– The Block (@TheBlock__) February 14, 2020
The massive burst of open interest seen in Bitcoin futures contracts could have a very positive impact on the underlying market.
The diagram below – which shows what trends in volume, open interest and price mean for the future development of an asset – shows that the most optimistic scenario for each market is that price, volume and open interest increase at the same time , indicating “strength”, a “bullish” price action and a general trend of rising prices.
As you can see, the open interest in the Bitcoin futures is in the has grown stronger in recent months. This is of course due to an increase in volume, as investors are slowly starting to enter the crypto markets again. The simultaneous growth of these three measures would indicate that Bitcoin is on the brink of an even bigger bull run than it has already been observed.
Text reference: newsbtc