Markets
Bitcoin (BTC) Bets Hit Lifetime High of $37 Billion as ETF Flows Set New Record
Bitcoin (BTC) Traders have now placed the highest positions ever on futures contracts tracked by BTC in the asset’s history, as open interest surpassed $37.7 billion on Thursday evening, setting a new record.
This eclipsed a previous high of just under $37 billion in mid-March, when bitcoin recorded new highs of $73,700.
The jump came as spot Bitcoin exchange-traded funds (ETFs) set an 18-day inflow record, The block reported. BlackRock’s IBIT recorded $340 million in net inflows on Thursday, according to preliminary data. data tracked by SoSovalue shows, while Ark Invest’s ARKB saw net outflows of nearly $97 million.
More than $5 billion in open interest has been added since Monday, according to Coinglass data, while BTC prices rose from the $68,500 level to $71,000 during the period. Of the $37.7 billion, traditional financial powerhouse Chicago Mercantile Exchange (CME) holds the highest bets with $11 billion, followed by crypto exchange Binance with $8 billion.
The large long/short ratio shows a bias towards bullish sentiment. Data shows the ratio increased Friday morning from Thursday’s level of 0.94.
A ratio greater than 1 means there are more long positions than short positions, suggesting positive market sentiment for an asset. On the other hand, a ratio below 1 suggests that short positions outnumber long positions, indicating negative expectations.
Thus, several traders expect Bitcoin to rise further in the coming weeks, citing a growing risk appetite and favorable regulatory expectations.
“Bitcoin can overcome the resistance level in the 71,000-73,000 area and reach all-time highs in the following weeks, thanks to the optimism of the financial markets,” said Ruslan Lienka, head of the exchange’s markets of cryptocurrency YouHodler, to CoinDesk in an email on Friday. “This positive sentiment is driven by expectations of interest rate cuts in the US and Europe, which are boosting the flow of capital into risky assets.”
“High trading activity with meme stocks such as GameStop and other penny stocks with low ratings shows a growing risk appetite,” Lienka added.