CryptoBitcoinBitcoin Traders Set Record Positions as Market Sentiment Turns Bullish

Bitcoin Traders Set Record Positions as Market Sentiment Turns Bullish

Bitcoin traders have reached a historic milestone, placing the highest-ever positions on BTC-tracked futures. Open interest in these futures surged to over $37.7 billion late on Thursday, surpassing the previous peak of nearly $37 billion recorded in mid-March, when Bitcoin prices hit new highs of $73,700.

The recent surge in open interest coincides with record inflows into spot bitcoin exchange-traded funds (ETFs) over an 18-day period, according to The Block. BlackRock’s IBIT reported net inflows of $340 million on Thursday, while Ark Invest’s ARKB saw net outflows of almost $97 million, as per preliminary data tracked by SoSovalue.

Since Monday, over $5 billion in open interest has been added, with BTC prices climbing from $68,500 to $71,000 during this period, based on Coinglass data. The Chicago Mercantile Exchange (CME) holds the largest share of these positions at $11 billion, followed by Binance at $8 billion.

The significant long-short ratio, which rose above 1 early Friday from Thursday’s 0.94, indicates a bullish market sentiment. A ratio above 1 suggests that long positions outnumber short positions, reflecting positive expectations for Bitcoin’s future price movement.

Many traders are optimistic about Bitcoin’s potential to rise further in the coming weeks, driven by increased risk appetite and favorable regulatory outlooks. Ruslan Lienka, chief of markets at crypto exchange YouHodler, expressed this optimism in a Friday email to CoinDesk. He stated, “Bitcoin can overcome the resistance level in the zone of 71k-73k and renew all-time highs in the following weeks, driven by optimism in financial markets. Such positive sentiment is caused by expectations of coming interest rate cuts in the US and Europe that stimulate capital inflow into risk assets.”

Lienka also noted the elevated trading activity in meme stocks such as GameStop and other low-rated penny stocks, indicating a growing risk appetite among investors.

Bitcoin’s Expected Trading Range:

Support: $68,500

Resistance: $73,700

Trend Forecast:

Bullish: Positive market sentiment and favorable economic expectations point to a continued upward trend in Bitcoin prices.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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