It may be that when looking at Bitcoin (BTC) in the short term, we can think that the uptrend has ended. However, the truth does not appear to be so.
Bitcoin CME futures break new record
The Open Interest in the CME Group’s Bitcoin futures have reached a new all-time high of $ 830 million amid an uptrend in the price of BTC.
If we look at Bitcoin’s quarterly chart, we can see that the cryptocurrency has experienced a fairly strong uptrend since mid-March.
However, sometimes we can become a bit myopic and judge based on recent events. In fact, some may have interpreted Bitcoin’s stability in past weeks as a bear market when, in fact, it has not.
And, as proof of this, we have a sustained increase in Open Interest in Bitcoin futures. In fact, recently from CryptoTendencia we reported the previous high of $ 724 million for CME Group.
As we reported at the time, Open Interest is a measure that gives us a perspective on how money flows in the market. Therefore, an increase in Open Interest represents an entry of new or additional money to the market.
Therefore, the growing Open Interest is a reflection of increasing institutional activity which is positive for Bitcoin.
Does low volumes mean downtrend?
Despite the fact that the Open Interest in Bitcoin futures has seen a significant increase, the daily volumes of BTC futures have shown a continuous decrease after the high of July 27.
However, this does not necessarily translate into bearish sentiment. In fact, volumes generally tend to trend downward after great volatility in the market.
So, for the moment, the current trading volumes should not cause concern.
In this regard, Bitcoin appears to be in an uptrend. However, let’s remember the volatility of this market and be cautious.