Deribit Reports Yearly High in Bitcoin Futures
Bitcoin futures trading is experiencing significant trends, with Deribit and the Chicago Mercantile Exchange (CME) reporting yearly highs of $740 million and $740 million respectively. This indicates increased market participation and potential institutional interest in Bitcoin. Justin d’Anethan, Head of Business Development for APAC at Keyrock, has observed a premium on CME Bitcoin futures contracts, indicating increased institutional participation.
The Block’s Data Dashboard also shows an all-time high for CME Bitcoin long open interest by asset managers, revealing nearly $2.2 billion in Bitcoin long open interest held by these institutional players. The current market dynamics are likely influenced by the anticipation of a decision on spot Bitcoin ETFs, expected by mid to end of January, creating pressure on investors to front-run the potential capital influx into the Bitcoin market. However, d’Anethan cautions about the crypto market’s unpredictability, suggesting that when a large majority is long on Bitcoin, significant players might drive prices lower, potentially triggering leveraged long liquidations.
(With inputs from Shikha Singh)
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