CME Bitcoin futures open interest hits 8-month high, greater than when BTC price was at $65K

Open Interest surged to $3.22 billion Thursday to levels not seen since February. Read the full article by: Yashu Gola

Key Points:

• The Chicago Mercantile Exchange is one of the oldest financial institutions in the US and they also feature BTC and ETH futures for their clients. They are one of the only issuers of cryptocurrency derivatives in the traditional finance market.

• On their platform open interest for futures contracts are at an 8 month high with outstanding BTC contracts worth $3.22 billion. That is just $40 million lower than the ATH in April before the market crashed in May.

• Right now analysts are saying the uniform rise recently with open interest, volume, and price as a sign the up trend will continue. Volume is one of the biggest factors in price movement day to day and for this uptrend to continue we will also need the trading volume to keep pace.

• It is also worth nothing that the higher the open interest along with increasing price is also an indication of the asset being over leveraged. When large amounts of positions get liquidated at the same time it causes the market to have flash crashes.