Renewed Interest in Bitcoin
The Chicago Mercantile Exchange (CME) is experiencing a surge in open interest for Bitcoin (BTC) futures, reaching $5.2 billion, just $200 million shy of its late October 2021 all-time high. Over the last 30 days, open interest has grown from $3.63 billion to $5.20 billion, coinciding with Bitcoin's 26% gain. However, analysts are waiting for CME's latest report to determine how traders are positioned.
Big Players on CME
IG Australia analyst Tony Sycamore explained that CME's Nov. 28 report to the Commodities Futures Trading Commission revealed that "big players" on the platform were net short at the time. Until the new report is released on Tuesday, Dec. 12, investors won't know if these players have switched to a net long position.
Bitcoin's Rally Driven by More than Speculation
The recent rally in Bitcoin's price is not solely driven by speculation around the potential approval of spot ETF products by the SEC, according to Sycamore. He believes that Bitcoin's relationship with the macro environment, particularly the Federal Reserve's signal to cut interest rates, is a significant driver of price action.
Traditional Finance Institutions Show Interest
In November, CME surpassed Binance to become the top spot for Bitcoin futures open interest. This move was seen as an indication that traditional finance institutions were increasingly interested in crypto products. While many analysts expect a spot ETF approval to drive Bitcoin's price up, some predict a "sell the news" event following the approval.
