The open interest rate of CME Bitcoin futures peaked last Friday.
The overall figure of 5,190 for the period from May 27 to June 3 represents the largest number of open interest rates, or outstanding contracts, in CME futures and bitcoin ever increasing by 7 percent in the previous week, according to trading data on futures trading.
May 31 marked the last day of trading on CME futures markets before the contract settlements, which are scheduled to occur at the end of the trading session (June 3) trading.
The sharp increase in trading activity in futures contracts may be a sign of increased institutional participation in cryptocurrency markets. It is worth noting that futures were recorded at CME at the peak of the bull market in December 2017. Futures trading activity, however, remained dull during 2018, courtesy of the bear market.
CME futures market – a daily snapshot
As we have seen in the past, bitcoin’s futures usually “fill” a gap created by closing the trading period on the weekend with the resumption of trading next Monday. A large demand in futures contracts usually creates larger gaps (from the time of the opening of a new week), thus risking a larger correction after the prices are correct.
The gaps shown in the future CME bitcoin chart for May 17 and May 31 provide a good example.
On May 17, the specific price of bitcoin dropped to a low of $ 6,600 before the larger buying pressure pushed prices above $ 7,300, completing the 11.74% gap that remained in the futures market four days earlier.
Again on May 31, after rising to $ 9,090 on the Coinbase rate, the price of BTC returned to 11% below $ 8,000 before resuming its bullish trend, pushing back above $ 8,200 an hour, completing the remaining 5.5% gap on the market Futures, again, four days earlier.
Finally, the last gap of $ 145 at the end of the last trading day opened today with a correction of $ 8,595, which came into force early in the morning, with the price of bitcoin falling below $ 8,400 on most exchanges.
CFTC data also showed open interest in short positions at 85.1%, compared to 62.9% in the range of bitcoin, suggesting a short-term price pullback as investors face the possibility of a downward price decline.