Bitcoin climbs above $ 9,200 amid CME open interest rises to 10-month high
Bitcoin has resumed its rally to recent highs this Wednesday. At the time of publication, the leading cryptocurrency is trading at about $ 9,250, having added 4% to its value in the last 24 hours.
At the same time, the open interest or the volume of active positions in Bitcoin futures of the Chicago Mercantile Exchange (CME) increased to $ 351 million.The last time at these levels was the value of July 10, 2019.
The indicator reached a minimum of $ 107 million on March 12 amid a sharp decline in the price of bitcoin. Since then, growth has been 228%.
“The growing open interest of CME is evidence that professional traders are returning to the Bitcoin market,” write analysts at Arcane Research.
Commentators point out that only regulated financial institutions in the US are forced to use CME services, while other market participants can place positions on BitMEX and other similar crypto-derivatives exchanges..
“The CME value is small in the broader market and overall open interest is still quite low,” said Darius Sit, co-founder of Singapore-based QCP Capital..
The aggregate open interest on the major derivatives exchanges on Tuesday exceeded $ 2.5 billion, gradually rising to levels on March 11, when the value was $ 3.8 billion before the collapse.
In any case, bulls tend to view the growth of open interest as a positive factor, since together with the rise in the rate, it serves as confirmation of an uptrend.
Data from the Messari platform indicate that traders are leaving positions in leading tokens for bitcoin ahead of the halving. All major altcoins have dropped against bitcoin in the past 24 hours, although they have risen in dollars.
As a result, the bitcoin dominance index has grown by 3% since the end of April.