The open interest of Bitcoin options contracts on the Chicago Mercantile Exchange (CME) has reached a historic high of nearly $2 billion in the past 24 hours, surpassing previous records. The data from these options contracts suggests that the market sentiment is bullish, with a 65% probability of an upward trend.
According to a report by The Block, the open interest of Bitcoin options contracts on CME has reached a historic high in the past 24 hours, approaching $2 billion. Velo data, an encrypted data website, also confirms this trend, stating that the open interest of Bitcoin options contracts amounts to $2.1 billion.
Historically, a higher open interest in options contracts indicates a greater number of participants and higher market liquidity. This is because open interest refers to the total number of options contracts that have not been exercised. An increase in open interest indicates increased trader 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%, indicating a significantly higher bullish sentiment in the market.
On CME, both Bitcoin options and futures contracts are set to expire on the last Friday of December. According to data from The Block, the trading volume of Bitcoin futures on CME has reached $41 billion in December.
Bitcoin futures traders are currently banking on the announcement of interest rate cuts in the United States, which is expected to happen in March next year and potentially further decrease over the following year. This prediction aligns with the data from the CME FedWatch tool, which indicates a 66.7% probability of a 25 basis point interest rate cut in March 2024.
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bitcoin
Bitcoin futures
Bitcoin options
Chicago Mercantile Exchange