💰Bitcoin's Key Indicators Are Optimistic, Futures Premium Doubles, Market Sentiment Soars, Strong Bullish Signals?
Recently, some key indicators for Bitcoin have shown a super optimistic trend, and the annualized futures premium for Bitcoin has also surged significantly. The market generally believes this is a super bullish signal!
Analyst James Van Straten stated on the X platform that the annualized premium for buying spot Bitcoin ETFs and selling CME futures has almost doubled in the past month, increasing from 6% to 11%. This figure is more than twice the current effective federal funds rate of 5%.
At the same time, as the Federal Reserve plans to further cut interest rates in the next three months, the use of "basis trading" is expected to increase. However, this news has excited the entire crypto community.
James Van Straten also mentioned that the open interest (OI) for Bitcoin futures is also increasing, which makes him somewhat conflicted about the trend of using "basis trading."
Additionally, in the past few days, the open interest for Bitcoin futures has increased by over 30,000 BTC, marking the largest increase since June. Meanwhile, non-commercial net short positions are also surging.
Despite the total inflow into Bitcoin spot ETFs reaching $2.7 billion and being recently acquired by Emory University in the U.S., the market generally favors a directional bullish trend, but CME's open interest has also declined since mid-October.
Overall, Van Straten believes that directional bullish positions will only increase liquidity, which is good for the market.
As Bitcoin continues to rise, it is now approaching the historical high of $73,000 set in March, and market sentiment is becoming increasingly optimistic. If this momentum continues, BTC may soon retest its historical high.
💬 Finally, how long do you think this wave of Bitcoin's surge can last? Leave your thoughts in the comments!
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