While the crypto market maintains its bullish strength, many will key statistics of Bitcoin have shown strong and optimistic trends in recent weeks, which could positively influence prices, indicating a promising outlook for BTC in the coming days.
Strong growth in Bitcoin Futures Premium
BitcoinThe annualized futures premium, a crucial measure that often provides bullish signals, has grown significantly in recent weeks. Crypto enthusiast and analyst, James Van Straten, shared the positive development on the X platform (formerly Twitter), which attracted the attention of the crypto community.
It is worth noting that the rise in this crucial indicator comes in light of rising market trends, indicating a shift in sentiment and a rise in investor confidence in future price development, both in the short and long term. Also, growing demand, with traders expecting further increases, is often indicated by this spike in the indicator.
According to the expert, the premium for purchase has increased on an annual basis in the past 1 month spot Bitcoin Exchange-Traded Funds (ETFs) and short futures sales on the Chicago Mercantile Exchange (CME) have nearly doubled in growth, from about 6% to 11%.
James Van Straten further claims that the increase is more than twice as high as the current effective interest rate of 5% by the Federal Reserve (Fed), in addition to the fact that the Fed will cut rates even further over the next three months. “I assume that the use of ‘basic trading’ will only increase,” he added.
The analyst too pointed out an increase in the Open Interest (OI) of Bitcoin’s Futures, while expressing his contradiction when it comes to whether the “basic trading” is used more or less.
In the last 24 hours, Bitcoin’s open interest saw a sharp increase of 20,000 BTC. Van Straten notes that the growth is the greatest peak in open interest since June this year, along with an increase in net non-commercial short positions.
While Bitcoin ETF inflows totaling $2.7 billion and the recent acquisition of Emory University in the United States support a bullish directional long bias of around $15 million, CME’s open interest has fallen more than 6% since the highest point ever in the US. mid-October. In any case, Van Straten claims that directional long positioning only increases liquidity. If not now, it will happen later.
BTC is poised to retest its all-time high soon
Optimism is brewing in the market as Bitcoin continues to see promising upside moves is approaching its all-time high price of $73,000 set in March. Given the strong investor sentiment towards crypto assets, there is a possibility that BTC could reach this crucial level within a few days.
At the time of writing, Bitcoin was trading at $72,412, just inches away from its peak, indicating an increase of almost 2% in the past day. Several upcoming important events such as the US presidential election It is believed that they will drive the price even higher, which could cause BTC to reach a new peak soon.
Featured image from Unsplash, chart from Tradingview.com