Open interest in futures speaks in favor of bitcoin growth
The current open interest in BTC futures is at relatively high levels
However, volatility amid US elections could hinder Bitcoin’s strengthening
International consortium of news organizations developing transparency standards.
However, if the indicators of open interest indicate the interest of investors in a financial product, then it is rather difficult to determine whether buyers are betting on the fall or rise of an asset..
Analytical firm Messari has released a macro forecast in the context of the American elections. The materials say that the high open interest is associated with the rise in the bitcoin rate, which rose from the $ 4,000 area reached in March amid widespread panic amid the first wave of the coronavirus pandemic, to the $ 14,000 mark, the breakdown of which prices have yet to confirm..
At the time of writing, BTC is trading at $ 13,865, retreating from previously highs outside the key $ 14,000 level.
Bitcoin Futures Trading Bootcamp(Part 1) – Binance Futures For Beginners
Messari’s response says:
Rising prices in a bullish trend with an increase in open interest may mean that impressive amounts of capital are entering the market. If the increase in open interest is associated with the opening of long positions, this is a favorable sign for Bitcoin itself. If these are positions for sale, then the prospects look much less rosy..
Also, the forecast of the analytical company notes that the results of the voting in the United States, or rather, the uncertainty around the past elections and their consequences, may play against bitcoin. If Trump ultimately loses, he will have no interest in the stimulus package until mid-January, when he leaves the White House (if Biden wins). Moreover, many investors may be intimidated by the effect of Biden’s plan to raise taxes on capital gains..
In any case, if in the short term, due to this uncertainty, volatility may remain high, then in a broader context, bitcoin has acquired the status of a macro-asset, which deserves serious mention in the corporate and investment world..
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..