As the cryptocurrency market maintains its bullish strength, many major Bitcoin indicators have shown strong and optimistic trends in recent weeks, which could have a positive impact on the price and continue to grow in the coming days. signals a promising outlook for Bitcoin during the day.
Significant growth in Bitcoin futures premium
Bitcoin’s annualized futures premium, a key indicator that often gives bullish signals, has risen significantly over the past few weeks. Cryptocurrency enthusiast and analyst James Van Straten shared positive developments on the X (formerly Twitter) platform, which caught the attention of the crypto community.
It is worth noting that the rise in this important indicator is in light of rising market trends, indicating a change in sentiment and increasing investor confidence in future price performance in the short and long term. Masu. Also, this spike in the indicator often indicates an increase in demand that traders expect to see further increase.
Over the past month, the annualized premium for buying physical Bitcoin exchange-traded funds (ETFs) and shorting Chicago Mercantile Exchange (CME) futures has nearly doubled, from about 6% to 11%, according to experts. This resulted in an increase in
James Van Straten further argued that in addition to the Fed cutting rates further in the next three months, this increase is more than double the current Fed funds effective rate of 5%. are. “The use of ‘basis trading’ will continue to increase,” he added.
Bitcoin futures annualized premium nearly doubled in one month | Source: James Van Straten on X
The analyst also noted the rise in open interest (OI) in Bitcoin futures, but expressed ambivalence as to whether “basis trading” is being used more or less.
In the past 24 hours, Bitcoin futures open interest has seen a sharp increase of 20,000 BTC. Van Straten noted that this growth, along with a surge in net non-commercial short positions, represents the largest jump in open interest since June of this year.
However, the Bitcoin Spot ETF saw total inflows of $2.7 billion, and its recent acquisition from Emory University in the US supports an upward long bias of about $15 million, while CME open interest is at an all-time high in 2018. The value has decreased by more than 6% since. Mid-October. In any case, Van Straten argues that directional long positioning simply increases liquidity, if not now, then later.
BTC is poised to retest all-time highs soon
There is widespread optimism in the market as Bitcoin continues its promising upward trend as it nears its all-time high of $73,000 hit in March. Considering the strong investor sentiment towards the crypto asset, it is possible that BTC reaches this important level within the next few days.
As of this writing, Bitcoin is trading at $72,412, just inches away from its all-time high, representing an increase of nearly 2% over the past day. It is believed that some upcoming important events like the US presidential election will further push the price higher and BTC could soon set a new high.
BTC trading at $72,284 on 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
