As the crypto market maintains its bullish strength, many key indicators of Bitcoin have demonstrated strong and optimistic trends in recent weeks, which could have a positive impact on prices, suggesting a promising outlook for BTC in the coming days.
Strong growth in the Bitcoin futures premium
BitcoinThe annualized futures premium, a crucial metric that often gives bullish signals, has seen significant growth in recent weeks. Crypto enthusiast and analyst, James Van Straten, common the positive evolution of the X platform (formerly Twitter), capturing the attention of the crypto community.
It is worth noting that the increase in this crucial indicator comes in light of upward market trends, indicating a change in sentiment and an increase in investor confidence in future price action, both short and long term. term. Additionally, growing demand, with traders expecting further increases, is often indicated by this rise in the indicator.
According to the expert, over the last month, the annualized purchase premium spot Bitcoin Exchange-Traded Funds (ETF) and short selling of futures contracts on the Chicago Mercantile Exchange (CME) nearly doubled its growth, from about 6% to 11%.
James Van Straten further claims that the increase is more than twice the Federal Reserve’s (Fed’s) current effective funds rate of 5%, in addition to the Fed’s even larger rate cut in over the next three months. “I suspect the reliance on ‘commodity trading’ will only increase,” he added.
The analyst also underlines an increase in Bitcoin futures open interest (OI) while expressing conflict over whether “basis trading” is being used more or less.
Over the past 24 hours, open Bitcoin futures saw a sharp increase of 20,000 BTC. Van Straten noted that growth represents the greatest open interest peak since June this year, alongside an increase in non-commercial net short positions.
However, as Bitcoin spot ETF inflows total $2.7 billion and the recent acquisition of Emory University in the United States supports a long directional recovery bias of around $15 million, the CME open interest has declined more than 6% since its all-time high in 2017. mid-October. In any case, Van Straten says directional long positioning simply increases liquidity, if not now, then later.
BTC Set to Retest All-Time High Soon
Optimism is brewing in the market as Bitcoin continues to see a promising upward move. approaching its all-time high price of $73,000 set in March. Given the strong investor sentiment towards crypto assets, it is possible that BTC could reach this crucial level in a few days.
At the time of writing, Bitcoin was trading at $72,412 just inches from its peak, indicating a rise of almost 2% over the past day. Several significant events to come such as the US presidential election This is believed to push the price even higher, which could see BTC reach a new high soon.
Featured image from Unsplash, chart from Tradingview.com
