The recent data from Deribit and the Chicago Mercantile Exchange reveals noteworthy trends including Annual Peak in Bitcoin Perpetual futures trading recording an annual peak, signaling intensifying market activity and potential institutional interest in Bitcoin.
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Deribit Achieves Annual Peak in Bitcoin Perpetual Futures
As reported by Brian Gleenon for The Block, the open interest in Bitcoin perpetual futures on Deribit has surged to a yearly high of $740 million.
This level, last observed in November 2021 during Bitcoin’s all-time high, suggests the influx of new capital into the market, indicating increased participation and potential liquidity.
CME Bitcoin Futures
Justin d’Anethan, Head of Business Development for APAC at Keyrock, highlights a significant premium on CME Bitcoin futures contracts, interpreting it as a sign of growing institutional involvement in the cryptocurrency market.
The Block’s Data Dashboard supports this observation, revealing an all-time high of nearly $2.2 billion in Bitcoin long open interest held by asset managers.
Spot Bitcoin ETF Decision Anticipation
D’Anethan suggests that current market dynamics may be influenced by anticipation of a decision on spot Bitcoin ETFs, expected by the mid to end of January.
This anticipation creates pressure on investors aiming to anticipate potential capital inflows into the Bitcoin market through a more accessible investment vehicle.
Despite positive indicators, D’Anethan provides a cautionary note regarding crypto market unpredictability. He warns that when a significant majority is bullish on Bitcoin, major players might manipulate prices lower, potentially triggering liquidations of leveraged long positions.
Bitcoin’s Market Performance
At the time of writing, Bitcoin is trading at approximately $44,103, reflecting a 5.85% increase in the past 24 hours and a remarkable 180% surge in the year-to-date period.
Analysis of the Current Bitcoin Rally
Credible Crypto, a pseudonymous crypto analyst, discusses the current Bitcoin rally, noting that leveraged traders in the perpetual futures market are driving this surge.
While this rally may not be the most stable foundation, it could signify the onset of a robust bull market for Bitcoin, with potential shifts in market dynamics toward perpetual futures leading the way.
Despite the leverage-driven rally, there seems to be subtle support from spot market buyers, suggesting a more discreet but effective form of backing for the ongoing Bitcoin rally.
To conclude, Deribit achieved an annual Peak in Bitcoin Perpetual Futures, and Bitcoin crossing the $44K mark has sparked positive enthusiasm among investors. With the anticipation of ETF and other trends, Bitcoin is likely to achieve higher.
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