Bitcoin Futures Traders Bet on Bullish Price Action, but Not Too Fast

Published on by Cointele | Published on

Bitcoin futures trading has been on a high since July 21 with both the Chicago Mercantile Exchange and Bakkt seeing sizeable increases in volume and open interest for their contracts.

Amid the current positive price action for Bitcoin, bullish sentiment appears to be gathering steam in the BTC futures market.

CME BTC futures interest sets new all-time highAs previously reported by Cointelegraph, Bitcoin futures open interest has been on the rise in tandem with the gains seen in the spot market.

According to data from crypto derivatives analytics platform Skew, CME BTC futures open interest is at an all-time high of $740M.A week after "Black Thursday," CME Bitcoin futures open interest almost fell to their lowest level in three months.

The rising OI in Bitcoin futures is representative of the trend seen in the crypto derivatives arena as a whole.

For Adam Todd, the CEO of crypto derivatives exchange Digitex Futures, the rising OI means more money flowing into the Bitcoin futures market.

With Bitcoin price volatility dropping to all-time lows before this current surge, short-term funds would have become unprofitable.

Bitcoin options OI also on the riseApart from futures, the OI for Bitcoin options has also seen a similar increase.

Apart from dominating the Bitcoin options OI, Deribit also controls over 90% of the market's trading volume, up from the 60% dominance achieved in Q2 2020.Data from Skew shows the Bitcoin options put/call ratio, or PCR, is beginning to climb steadily.

The 106,000 BTC in Bitcoin futures and options that expired on July 31 might also have some impact on the price action in Q3 2020.