CME Bitcoin Futures Open Interest Up 265% In October, BTC’s Next Test at $90,000
The world’s largest cryptocurrency Bitcoin (BTC) has been consolidating around $62,000 after last week’s strong rally. The euphoria in the market has been pretty strong following the launch of the ProShares Strategy Bitcoin ETF last week.
Since the Bitcoin ETF tracks the CME Bitcoin futures, the open interest for the CME Bitcoin Futures has surged by $3.95B so far in October. As on-chain data provider Glassnode explains:
Bitcoin open interest in CME futures contracts has increased by $3.95B over the course of October This is in part driven by the introduction of the $BITO ETF product. This represents a 265% growth in open interest since the end of September.
Bitcoin’s Next Test At $90,000
Bitcoin continues to attract heavy institutional interest amid the launch of Bitcoin ETF. Several analysts continue to remain bullish on the Bitcoin story and expect the next rally will take Bitcoin to $90,000 levels.
In a client note last Wednesday, Fundstrat wrote:
“Initial upside targets for Bitcoin above $65,000 lie near $72,500, then $89,000, and thought to be definitely within reach on this breakout of former peaks”.
Fundstrat stated that the last target will be a 100% extension of the rally from last March’s low. Many analysts are already expecting the Bitcoin price to touch $100K levels by the year-end.
Besides, there’s been strong buying and accumulation by bigger investors also dubbed “whales”. Furthermore, PlanB, author of stock-to-flow model also noted that Bitcoin will continue to trade at all-time high levels for a few months from here on.
When #bitcoin is in all time high mode (color turns red), it usually stays in ATH mode (red) for a couple of months pic.twitter.com/5QYkWjdgNv
— PlanB (@100trillionUSD) October 24, 2021
The world’s largest cryptocurrency is already up more than 45% in the month of October. If Bitcoin continues to resonate with this performance, there is nothing stopping it from gaining higher levels in the coming months. The fourth quarter has been particularly bullish for Bitcoin and the overall crypto space in general.
As of press time, Bitcoin (BTC) is trading 1.29% up at $61,997 with a market cap of $1.169 trillion.
