Crypto Confidence Soars as Bitcoin Futures Trading Hits New Record

Recent information from CoinGlass reveals that Bitcoin (BTC) futures have hit a historic high in open interest, eclipsing $37.7 billion on Thursday. This achievement overtakes the last record set in mid-March when open interest was a shade under $37 billion, coinciding with Bitcoin’s rise to new heights of $73,700.

Open interest for #Bitcoin reaches a new alpha point of $37.66B

👉https://t.co/b1RbJ1A35P pic.twitter.com/ZcTnXjxlNt

— CoinGlass (@coinglass_com) June 7, 2024

This significant rise in open interest happens along with unprecedented levels of capital flowing into Bitcoin ETFs, as indicated in the last 18 days, reported by The Block. On Thursday, BlackRock’s IBIT reported seeing net inflows amounting to $340 million, as captured by SoSovalue’s preliminary data, while Ark Invest’s ARKB saw net outflows of nearly $97 million.

Positive Sentiment Persists for Bitcoin

According to CoinGlass, over $5 billion in open interest has been added since the start of the week, with BTC’s price elevating from $68,500 to $71,000 in this interval. Of the $37.7 billion total open interest, the Chicago Mercantile Exchange (CME) contributes the lion’s share at $11 billion, with Binance coming in next at $8 billion.

The long-short ratio, a gauge of market sentiment, has escalated to above 1 early on Friday from 0.94 on Thursday, indicating an optimistic outlook. Ratios above 1 point to a prevalence of long over short positions, a sign of bullish sentiment, whereas ratios under 1 typically reflect bearish expectations.

Traders are expecting Bitcoin to register more gains in the weeks ahead due to increased risk appetite and positive signs from regulatory agencies. Ruslan Lienka, head of markets at YouHodler, expressed to CoinDesk in a Friday communication:

We foresee Bitcoin breaking the resistance barrier between 71k-73k and achieving new all-time highs in the next few weeks, buoyed by a wave of optimism in financial markets. […] This bullish outlook is driven by the prospect of upcoming reductions in interest rates in the US and Europe, contributing to capital inflows into riskier assets. […]

The heightened trading surrounding meme stocks like GameStop and other less esteemed penny stocks is indicative of a broader proportion of risk-taking in the market.

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