Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has approached $5.2 billion, nearing its previous all-time high recorded in late October 2021.
Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has approached $5.2 billion, nearing its previous all-time high recorded in late October 2021. The past month has witnessed a rise in open interest for CME's Bitcoin futures, climbing from $3.63 billion to $5.20 billion, coinciding with Bitcoin's 26% price surge, currently trading at $43,651.
The previous increase in open interest aligns with a significant price jump for Bitcoin, with its value soaring from $45,000 to $66,000 between October 1 and 21, 2021. This surge indicates a renewed interest in Bitcoin, although the positioning of traders on CME remains unknown.
While some attribute the recent surge in Bitcoin's price to the speculation surrounding the Securities and Exchange Commission (SEC)'s potential approval of spot Bitcoin ETF products, others believe that Bitcoin's correlation with the macroeconomic environment, particularly the Federal Reserve's indication of interest rate cuts, also caused the recent explosive rally.
CME's ascent to the top spot in Bitcoin futures open interest, surpassing Binance, indicates a growing institutional interest in cryptocurrency products. While many analysts anticipate that the approval of a spot ETF could trigger a rapid price surge, some caution that a "sell the news" event could occur in the days and weeks following the approval.
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