As the cryptocurrency market maintains its bullish strength, many… Key metrics of Bitcoin It has shown strong and optimistic trends in recent weeks, which may influence prices positively, indicating a promising outlook for BTC in the coming days.
Strong growth in Bitcoin futures
BitcoinThe annual premium of futures contracts, a crucial measure that often gives bullish signals, has seen significant growth in the past few weeks. Cryptocurrency enthusiast and analyst, James Van Straaten, subscriber Positive development on the X platform (formerly Twitter), attracting the attention of the cryptocurrency community.
It is worth noting that the increase in this important indicator comes in light of rising market trends, which indicates a shift in sentiment and an increase in investor confidence in future price performance in the short and long term. Also, increasing demand with traders anticipating further increases is often indicated by this rise in the indicator.
According to the expert, last month, the purchase annuity Bitcoin exchange-traded funds (ETFs) Shorting futures contracts on the Chicago Mercantile Exchange (CME) nearly doubled in growth, rising from about 6% to 11%.
James Van Straaten also claims the increase is more than double the current effective Fed funds rate of 5%, in addition to the Fed cutting interest rates further over the next three months. “I assume the use of ‘basic commerce’ will increase,” he added.
Analyst too He pointed out Open interest in Bitcoin (OI) futures rises with others expressing conflict when it comes to whether the “underlying trade” is being used more or less.
In the last 24 hours, open Bitcoin futures contracts saw a sharp increase of 20,000 BTC. Van Straaten noted that the growth represents the largest Increase in open interest Since June of this year along with an increase in net non-commercial short positions.
However, while spot Bitcoin ETF flows total $2.7 billion and the recent acquisition from Emory University in the US supports a directional long bias of around $15 million, open interest on the Chicago Mercantile Exchange has fallen more than 6% since the high. Its launch is in mid-October. However, van Straaten claims that setting directional long positions simply increases liquidity, if not now, then later.
BTC is poised to retest its all-time highs soon
Optimism is prevailing in the market as Bitcoin continues to see promising upward movement It is approaching all-time highs The $73,000 price tag was set in March. Given the strong investor sentiment towards crypto assets, there is a possibility that BTC could reach this crucial level within a few days.
At the time of writing, Bitcoin was trading at $72,412 just inches away from its peak, indicating a roughly 2% rise in the past day. Many upcoming major events such as US presidential elections It is believed that it will cause the price to rise, which could lead to BTC reaching a new peak soon.
Featured image from Unsplash, chart from Tradingview.com