Bitcoin futures trading sets another record as crypto confidence rises

According to data shared by CoinGlass, Bitcoin (BTC) traders set a new record for the highest positions ever on futures contracts tracked by BTC, with open interest surpassing $37.7 billion on Thursday. This milestone surpasses the previous high of just under $37 billion seen in mid-March, when Bitcoin hit a new high of $73,700.

Skyrocketing open interest coincides with record inflows of spot capital Bitcoin Exchange Traded Funds (ETF) in the last 18 days, as reported by The Block. BlackRock’s IBIT saw net inflows of $340 million on Thursday, according to preliminary data monitored by SoSovaluewhile Ark Invest’s ARKB saw net outflows of nearly $97 million.

Trust in Bitcoin continues to rise

Data from Coinglass reveals that more than $5 billion in open interest has been added since Monday, with BTC prices rising from $68,500 to $71,000 during the same period. Among the $37.7 billion in open interest, the Chicago Mercantile Exchange (CME) holds the highest bets with $11 billion, followed by crypto exchange Binance with $8 billion.

The long-to-short ratio, which indicates market sentiment, rose above 1 early Friday from Thursday’s 0.94 level, suggesting a bullish bias. A ratio above 1 indicates more long positions than short positions, reflecting positive market sentiment, while a ratio below 1 suggests negative expectations.

Several traders are forecasting further gains for Bitcoin in the coming weeks, citing growing risk appetite and favorable regulatory expectations. Ruslan Lienka, head of markets at crypto exchange YouHodler, told CoinDesk in an email on Friday:

Bitcoin can overcome the resistance level in the 71,000-73,000 area and return to all-time highs in the following weeks, driven by optimism in the financial markets. […] This positive sentiment is driven by expectations of interest rate cuts in the United States 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.

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