Large investors have shown increased interest in Bitcoin over the past 3 days
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Johny Smith
2024/10/24
3 mins read
The cryptocurrency market is seeing a surge in open interest in Bitcoin (BTC) futures. This, according to numerous experts, indicates the active participation of institutional investors. Leading analyst from K33 Research Vetle Lunde noted that the growth in OI indicators is not due to receipts in contracts on exchange-traded funds (ETFs), but due to the activity of direct market participants. According to the specialist, over the past 3 days, open interest in this segment increased by 19,120 BTC, which was the largest three-day increase since June 2023.
Most of the activity is focused on contract expirations in November. This suggests long-term growth expectations among large investors. Additionally, open interest on the Chicago Mercantile Exchange (CME) reached a record high of 172,430 BTC equivalent, setting a new all-time high. This significant increase in indicators indicates increased interest from institutional investors in BTC amid growing uncertainty in traditional financial markets.
Vetle Lunde believes that the increase in OI indicates the accumulation of long positions by institutional investors who expect further strengthening of the Bitcoin rate. Following the sharp increase in open interest, futures premiums have also increased, reaching their highest levels in the last 5 months. This indicates the willingness of segment participants to pay for the right to own futures contracts, which is usually associated with the expectation of growth in the underlying asset.
The K33 Research expert suggests that further developments in the futures market will depend on the behavior of the Bitcoin price and regulatory decisions. For now, long positions continue to dominate, but the sector remains sensitive to any macroeconomic changes, which could affect investor sentiment and preferences in the future.
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