Data provided by Skew Analytics revealed that open bitcoin futures interest amounted to $5.4 billion, close to the all-time high of $5.7 billion on Thursday, 3 November. Over the next two weeks, the open interest remained above $5 billion, reflecting investors' interest in digital assets. Messari’s report commented, “...(open interest) could be a sign of bullish sentiment if the increase in open interest is being fueled by long positions.” However, open interest is not the only element that impacts the digital asset economy.
The report concluded that,
“...while volatility could increase in the near term due to uncertainty, bitcoin has emerged as a macro asset that is now being mentioned seriously in the corporate and investing worlds.”
Why it matters: There is no doubt that Bitcoin is in the early stages of a phase-shift. A few big names have entered the Bitcoin space over 2020, and many more are looking at the sector as a way to diversify out of fiat assets. The extraordinary central bank actions that took place in the late spring of this year are unlikely to be enough to stave off financial collapse, and more money on the street is positive for crypto prices. While positioning in the futures market does seem to drive prices in the short run, over a longer period of time, it is easy to see that Bitcoin is being supported by real purchases, and will likely rise to levels that seem absurd at the moment.