Futures trading with Bitcoin (BTC) has increased since July 21, as both the Chicago Mercantile Exchange and Bakkt have seen significant volume increases and open interest in their contracts. This revival is happening with BTC futures as the spot market value of the largest digital currency by market value has hit a new 2020 high.

Two months after six months in May 2020, BTC began to show signs of expected bullish progress. Bitcoin usually sets new highs all the time next year to lower support for the bonus reward, as optimists at BTC indicate that the trend will continue.

In the midst of the current positive movement in bitcoin prices in the BTC futures market, it seems that bullish sentiment is strengthening. The number of long positions today exceeds short positions by almost 9 to 1, which means that any significant rejection can result in a series of optimistic elimination of bets, especially for long, long traders. Back in mid-March 2020, the market panic caused by the COVID-19 pandemic brought bitcoins down to $ 3,800. This decline triggered a series of foreclosures, especially on derivatives such as exchanges such as BitMEX.

Bitcoin hits new 2020 high
The rise in BTC rates comes amid a series of positive news for cryptocurrency with the Office of the Comptroller of the United States Currency, which allows national banks to offer cryptocurrency services. Large economies are moving towards stimulus packages to curb the disruption caused by the Coronavirus pandemic. EU leaders have already approved a $ 2 trillion spending plan. USD, and almost half of the amount was allocated 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.

When the US Federal Reserve prints more money in one month over the last 200 years, it seems that investors seem to hedge against the risk of exchange rate devaluation. This view appears to pose significant barriers to collateralized assets such as BTC and gold. Bitcoin's rise to a new 2020 high also coincided with gold, setting a new record for the price per ounce. In fact, the precious metal is close to surpassing $ 2,000 as silver has also climbed to its highest level in seven years.

Future CME BTC interest rates set the highest level ever
As Cointelegraph mentioned, Bitcoin's future interest increases along with the growth in the spot market. According to the Skew Derivative Analytics platform, open interest in CME BTC futures is at an all-time high of $ 740 million.

One week after Black Thursday, CME bitcoin futures fell to almost their lowest level in three months. However, the spot price fell over the following weeks, as did open interest in a stable BTC cash-to-BTC contract until mid-May. Since the bonus support event does not immediately increase the price, OI fell again. At the time, traders of cryptid derivatives suffered liquidation of around $ 1.3 billion as the price of BTC rose from $ 10,000 to a support level of $ 8,600.

It may be interesting to note that while OI is increasing, trading volume has fallen significantly in the last days of July. The same trend is seen on Bakkt with open interest at a time to a peak of 22 million dollars, but the trading volume decreases for both cash and really stable futures contracts.

In fact, the increase in OI in Bitcoin futures is a trend we are seeing in the cryptocurrency industry as a whole. According to the Q2 2020 report, the TokenInsight market analysis platform showed that OI Marketwide cryptocurrency derivatives grew from $ 2.62 billion to $ 5.53 billion in the second quarter of 2020. Typically, a high OI and a lower volume indicate more active activity in the risk group. than the actual trade. This scenario often indicates that traders are looking for a short bitcoin price.

According to the analysis platform Datamish.com series, however, the percentage of long and short trades is almost at the highest level by 2020. This trend indicates that traders expect Bitcoin to continue to have room to grow further. Joe DiPaskwale, CEO of Encrypted Hedge Fund BitBull Capital, told the Cointelegraph that the OI rally indicates for traders expecting an impending encounter in volatility:

“Bitcoin is at a critical level right now. If it exceeds $ 11,000 in a week or so, we can expect a higher estimate. However, we can expect the actual retail trade FOMO and the probability of its equivalence

Source: CoinTelegraph