CME’s Bitcoin futures are breaking open interest records, and this is what it means

Bitcoin’s institutional investors (BTC) are betting on a bullish move, as the latest data shows new records for the main cryptomone futures markets.

As Arcane Research, the institution-focused cryptomoney analysis company, indicated on May 7, the open interest in Bitcoin futures from CME Group has reached a new all-time high.

CME: open interest reached an all-time high, but volume fades

According to figures, gathered from the Skew monitoring resource, CME’s open interest has reached USD 399 million, surpassing the previous record of USD 392 million as of June 2019.

The growth rate of open interest has been particularly impressive since March, when it totalled less than USD 150 million due to the sudden 60% drop in Bitcoin’s price…

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At the same time, however, the total volume of WEC futures remains low and has not shown similar behaviour.

„Even so, the daily trading volume is not experiencing the same growth, indicating less trade-driven activity and more exposure-driven activity at CME,“ the company summarized.

One implication of the current status quo could be that CME traders are preparing in the short term for the price of Bitcoin, which at the close of this edition was around USD 9,300, close to the multi-month highs.

A single region of China accounts for a third of the global BTC hash rate

„For me, this implies that the expected course of action of the price will be to fill the short-term interest; I am convinced that it remains above,“ explained Cointelegraph Markets‘ analyst filbfilb in its latest newsletter.

This means that I think there may be room for more upside, possibly briefly through the USD 10,000, but overall I think we probably need more time below the 2008 USD 9,, which is just a few days away from its third Halving. The BTC event involves halving the rewards per block from 12.5 to 6.25.

The event has an impact on two fundamental variables: the price of BTC and mining. In addition, it is important to note that these variables affect each other.

In particular, the price of Bitcoin is likely to determine the profitability or otherwise of many miners after Halving. What will happen?

Bitcoin mining cools off in China days before the HALVING
Natural selection
The imminent halving of the block rewards calls into question the profitability of many retail miners and therefore makes all eyes on the event in the face of expectation.

Therefore, Bitcoin’s Halving brings with it many changes in the crypto industry.