Bulls Are Back In Town: Bitcoin Surges To $9,300

The bulls are back in town as the price of Bitcoin sees a new increase while the open positions on CME Futures hit 10-month highs as interest soars. All of this shows that the dominant coin is quickly gathering upward momentum alongside a surge in the open positions on futures listed on the Chicago Mercantile Exchange (CME).

The top cryptocurrency by market value surged again to $9,300 for the third time this year, registering its first above-$9,000 daily close in the last two months. The open interest is rising – the numbers show $351 million on Tuesday, which is the highest level since July 2019, according to data by Skew Markets – shared below.

Open interest hit a bottom of $107 million on March 12 with the “black” day for cryptocurrencies – when the Bitcoin price fell by over 40% amid the coronavirus-led crash in the traditional markets.

But now, bulls are back in town and as the analytics resource Arcane Research states in their monthly report:

“The uptick in the CME open interest is indicative of professional traders returning to the bitcoin market.”

For those of you who don’t regularly follow our cryptonews, the open interest by CME is widely considered to be a proxy for institutional activity. While this may be the case, retail investors too could be trading CME futures through different stock apps or via online brokers.

Some analysts now argue that only United States related institutions are required to trade on the CME while the rest may be trading on other major exchanges such as BitMEX. Put simply, the uptick in the CME open interest does not necessarily represent institutional activity – more so as the exchange takes into account a small portion of the global futures open interest.

The global futures open interest by Skew Markets shows another interesting figure. As you can see above, the total open interest in futures listed on major exchanges stood at over $2.5 billion on Tuesday, which is the highest level since March 11, when the tally was around $3.8 billion.

The current Bitcoin price news show that the flagship cryptocurrency has surged by more than 4% on the day, now trading at $9,283.