It may be that to see to Bitcoin (BTC) in the short term, we think that the upward trend has been terminated. However, the truth does not seem to be as well.
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Future of Bitcoin CME break new record
The Open Interest in the future of Bitcoin by CME Group have reached a new historical maximum of $830 million in the middle of a bullish trend in price of BTC.
If you look at the chart quarterly of Bitcoin, we can observe that the criptomoneda has experienced a bullish trend is quite strong since mid-march.
Chart quarterly of the price of Bitcoin. Source: CoinMarketCap
However, we can sometimes become a bit myopic, and to judge according to the recent events. In fact, some may have interpreted the stability of Bitcoin in the past few weeks as a bearish market when, in reality, has not been as well.
And, as a result, we have that sustained increase in the Open Interest in the future of Bitcoin. In fact, recently, from CriptoTendencia inform you the previous maximum of $724 million for CME Group.
As we reported at the time, the Open Interest is a measure that gives us a perspective about how is the flow of money in the market. Therefore, an increase in the Open Interest represents an input of new money or additional to the market.
Thus, the increasing Open Interest is a reflection of a growing institutional activity which is positive for Bitcoin.
What low volume means downtrend?
Despite the fact that the Open Interest in the future of Bitcoin has experienced a significant increase, the daily volumes of future BTC has shown a continuous decrease after the maximum on the 27th of July.
Daily volume of future of Bitcoin aggregates. Source: Skew Analytics
However, this does not necessarily need to translate into a bearish sentiment. In fact, generally volumes tend to show tendencies bassist then a great deal of volatility in the market.
So, for the time being, the trading volumes current should not generate concern.
In this sense, Bitcoin seems to be a trend upward. However, let us remember the volatility of this market and we are cautious.