In a recent development, Bitcoin (BTC) reclaimed its bullish stance, surging by 2.51% to revisit the $38,000 threshold, according to data from CoinMarketCap. However, profit-taking activities by less steadfast investors temporarily pulled the primary cryptocurrency down to $37,912 at the time of reporting. Despite this dip, signs of an impending breakout remained palpable in the market.
An increase in both Open Interest and price often signals a surge in optimistic market sentiment. Esteemed on-chain analyst Maartunn bolstered this notion by confirming the efforts of derivatives traders to surpass the $37,000-$38,000 range, as highlighted in a post on platform X.
According to CCData, a cryptocurrency market analytics provider, the Open Interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) witnessed a rise of roughly 21% in November. This increase helped CME overtake Binance and become the largest Bitcoin futures exchange. This data indicates a growing tendency among institutional investors towards Bitcoin futures trading.
Cryptocurrency aggregator Coinalyze’s data has revealed a 4.22% increase in the Open Interest within Bitcoin futures and perpetual futures contracts over the last day. The standard Bitcoin futures contract at CME, worth five BTC, is seen as a measure of institutional interest in digital assets. The growth in the OI has been fueled by the anticipation surrounding the potential approval of a spot Bitcoin ETF.
The amplifying institutional interest also manifested in the consistent uptick in BTC whales. According to data from Glassnode, addresses holding a minimum of $1,000 worth of coins witnessed an 11% rise since the commencement of the mid-October rally.
Whales are known for their significant asset trades and influence on price movements. Their apparent preference for large-scale buying has significantly contributed to the positive trajectory of BTC. Further confirming the optimism among whales, their long positions notably outweighed those of retail investors, as indicated by the Hyblock Capital Whale vs Retail Delta indicator.
The recent surge in institutional activity, exemplified by a notable increase in Open Interest, the shift in whale behavior, and the continued anticipation for regulatory approvals, provide strong support for the resurgence of Bitcoin beyond the $38,000 threshold. These developments have contributed to a bullish outlook for the cryptocurrency.
