Experts Reveal Factors Behind Bitcoin Futures Open Interest Impressive Performance
Bitcoin Open interest means the sum of all existing or opened futures contracts after subtracting the closed ones. Bitcoin futures contracts are the type of deals that allow crypto enthusiasts to buy Bitcoin at a predetermined date in the future. This part of the crypto industry allows users to place a bet on how much a Bitcoin unit would cost at a stipulated time in the future. Therefore, it provides users with the opportunity to earn a considerable amount of cash should their prediction comes to fulfillment.
Why Bitcoin futures open interest rate keeps soaring
Bitcoin’s futures open interest rate is currently doing great, after last month’s slightly underwhelming performance. There is currently over $14 billion worth of outstanding bets on Bitcoin’s price, equivalent to the present Bitcoin Open Interest. Discussing the recent hike, Quantum Economics’ founder Mati Greenspan believes the current turn of events could be traced to users’ change of mind. According to him, crypto users now believe it is very beneficial to hold Bitcoin for a long time. More people are participating in the Bitcoin futures contracts; hence, the number keeps rising exponentially.
It is also believed that the forthcoming China’s sixteen day New Year celebrations festival is already having a significant effect on the asset’s price as there are lots of large Bitcoin sell-offs. Greenspan claimed that many Chinese investors love to cash out during the highly-rated new year festival; hence a higher number of people are eager to place a bet on the level of improvement the assets would see in its price during this period. However, the crypto expert, who spoke extensively on the “Chinese dump” market rush, doesn’t expect extreme effects from this year’s festival because most of the demand are generated from US-based and European institutional funds.
High profile investors pledge support for Bitcoin has reached $40,000
The $14 billion mark reached by the Bitcoin Futures Open Interest last week currently stands as the all-time high. There was a corresponding increase in Bitcoin price after BTC jumped to $40,000 per unit before the end of the week. The cryptocurrency is inarguably back to its bullish run after weeks of unimpressive performance. While writing this publication, the coin is valued at $$37,851, but it’s expected to improve before the end of Monday’s transactions.
Meanwhile, top cryptocurrency investors, including Bill Miller, Elon Musk, and Ray Dalio, have pledged their support for the world’s most considerable digital assets. Ray Dalio was the first person to kick-start the support mission when he — and his colleagues at Bridgewater — unveiled plans to help Bitcoin maintain its status as the largest crypto in the world.
Musk took to Twitter to show his support after tweeting about the digital coin. Bill Miller declared his intention to put 15% ($2.25 billion) of his Miller Opportunity Trust into Grayscale’s Bitcoin Trust. CEO of US business intelligence firm MicroStrategy, Michael Saylor, was also played a role in boosting Bitcoin’s growth as he concluded a two-day conference dedicated to the coin. The company has invested not less than $2.6 billion in cryptocurrency.