Bitcoin Derivatives Indicator That Preceded BTC Price Record High

Bitcoin Derivatives Indicator That Preceded BTC Price Record High …


Bitcoin derivatives indicator BTC price
Bullish Bitcoin Derivatives indicator returns

YEREVAN ( — The Bitcoin derivatives market has recently experienced a burst of activity. According to Bloomberg, this surge is very similar to the late 2021 period when BTC charted an all-time high of over $68,700.

The growing interest in variables, such as the cost of perpetual futures trades, and the Open Interest in options indicate the recent surge.

Bitcoin Futures Open Interest (OI) and Trading Volumes

According to Deribit, one of the largest crypto options exchanges, Bitcoin options Open Interest has reached approximately $15 billion. As the article indicates, this surpassed the previous record set in October 2021.

Based on charges from Into The Block, Aggregated Open Interest in Bitcoin Futures shows a similar trend in many exchanges. Kraken, Huobi, BitMEX, Kucoin, and Bitget spiked in such an interest.

Bitcoin Derivatives Market, including futures open interest, has seen increase in interest from investors.
Bitcoin Futures Aggregated Open Interest. Credit: Into The Block

Moreover, the trading volumes for Ethereum (ETH) have also significantly recovered. The combined volume of the futures Open Interest (OI) in BTC and ETH jumped above the $20 billion mark for the first time since last November.

In Ethereum (ETH) Derivatives, the Open Interest volumes have reached $7 billion.

Open interest serves as a good indicator of the market’s current engagement. They are a good source of sentiments prevailing in the market about specific assets.

Deribit’s data reveals an increase in bullish options bets on Bitcoin, reaching $45,000 by the end of December.

Chicago Mercantile Exchange (CME) overtook Binance to become the leading BTC futures exchange
Dr. Martin Hiesboeck’s tweet about the growing interest in Bitcoin futures Open Interest on CME. Source: X

This increase in interest in Bitcoin futures has attracted large institutional capital. Recently, the Chicago Mercantile Exchange (CME) overtook Binance to become the leading BTC futures exchange by OI​​.

Meanwhile, Bitcoin Perpetual futures have also seen increased funding rates. Bitcoin futures curves, which traders analyze for price outlook, have also shifted upward. These indicate optimism in the market regarding the BTC price.

Robust Bitcoin (BTC) Price Recovery

The price of Bitcoin has witnessed a remarkable recovery. Its value has doubled this year, rebounding from a significant slump at the end of 2022.

BTC price has soared from less than $21,000 in March 2023 to nearly $38,000 on Nov. 16. This surge is buoyed by heightened expectations of Exchange-Traded Fund (ETF) approval.

Bitcoin's price has surged significantly over the past year
Bitcoin price performance in 2023: Credit: BTC/USD chart on TradingView

Several investors have speculated that the US Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF soon.

The SEC is reviewing spot Bitcoin ETF applications from at least 12 companies. This includes BlackRock, Fidelity, Ark Invest, Grayscale, and Wisdomtree, among others.

The growing institutional interest in Bitcoin derivatives indicates investors remain bullish on the BTC price.


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