Open interest on Chicago Mercantile Exchange Bitcoin options has exploded over the last week or so, surging over 1,000%.
Data from Skew, the cryptocurrency markets data analytics and trade execution services company, shows open interest climbing to $142 million in the first half of May. Open interest is the sum of all the contracts at the time that have not expired, been exercised or physically delivered.
Though there were notable spikes on 5 and 6 May, trading normalised immediately before the Bitcoin (BTC) halving on 11 May, only to rocket to $17 million on the day itself, and then surge to between $30m and $40m in the days since.
Institution investment in Bitcoin (BTC) had been growing steadily during the runup to the halving, with major players like Grayscale and Fidelity Digital increasing their positions, but the scale of this spike may surprise many.
AYO.NEWS says:
The massive increase in open interest on Chicago Mercantile Exchange Bitcoin options could well reflect the growing expectation of a massive COVID-19 lockdown-induced economic crash in traditional markets, much more than a reaction to the halving.
As we’ve previously speculated, with analysts around the world warning of an economic downturn unprecedented in modern times, we could be approaching the ‘moment of truth’ for Bitcoin (BTC).
Staying with Bitcoin and the halving, as we reported a few days ago, when the 629,000 block was mined, an ominous message was inserted by f2pool.
‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.
All original content featured on this site is © Pentagon Digital Limited, 2020
