The open interest of Bitcoin options contracts on the Chicago Mercantile Exchange (CME) has reached a new all-time high of nearly $2 billion in the past 24 hours, surpassing previous records. These options data indicate that the market sentiment is bullish, with a 65% expectation of a rising trend.
According to The Block, the open interest of Bitcoin options contracts on the CME has reached a historical high in the past 24 hours, approaching $2 billion.
Furthermore, Velo data, a cryptocurrency data website, also confirms this trend, stating that the amount of open interest for Bitcoin options contracts is $2.1 billion.
Historically, a higher open interest in options contracts signifies increased participation and market liquidity. This is because open interest refers to the total number of options contracts that have not yet been exercised. An increase in open interest indicates heightened trading activity, with new contracts being created and added to existing ones.
Based on data from Coinglass, for Bitcoin options contracts expiring in December, the ratio of bullish to bearish positions is 65% to 35%. The bullish ratio is nearly double the bearish ratio, indicating a generally positive market sentiment towards Bitcoin.
Bitcoin futures traders are betting on a rate cut in 2024. Both Bitcoin options and futures contracts on the CME will expire on the last Friday of December. According to The Block, the trading volume for Bitcoin futures on the CME has reached $41 billion in December.
Current Bitcoin futures traders are speculating on the news of a rate cut in the United States, which is expected to be announced in March next year and further reduced throughout the following year. This prediction aligns with the data from the CME FedWatch tool, which shows a 66.7% probability of a 25 basis point rate cut in March 2024.
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bitcoin
Bitcoin futures
Bitcoin options
Chicago Mercantile Exchange