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Bitcoin futures market on the rise


Optimism has returned to the Bitcoin market. And it is that, after weeks with the price stagnant around $ 9,000 per BTC, finally the price of the cryptocurrency has begun to increase once again. Exceeding in a matter of days the $ 11,000, to quote the $ 11,678 that is at the time of writing this article. An increase that has had its counterpart in derivative products. Well, the Bitcoin futures market is also on the rise these days.

Bitcoin’s return

For the past few weeks, unease has gripped the crypto community. Well, despite all the forecasts that predicted an unprecedented increase in the price of Bitcoin. For several weeks after the third Halving on the Cryptocurrency Blockchain, the virtual currency price stagnated around $ 9,000 per BTC. Making crypto users wonder what was happening with the digital currency, and if the post-Halving rally would finally happen.

Optimism in the price of Bitcoin is coming to the futures market. Source: CoinDesk
Optimism in the price of Bitcoin is coming to the futures market. Source: CoinDesk

And it is that, despite the stagnation in the price, the demand for Bitcoin increased sharply. After Grayscale and the institutional investors behind the firm began aggressively buying hundreds of Bitcoins a day. Which, combined with the drop in the rate of expansion of BTC’s money supply, should have led to the expansion of its price.

However, and after this agonizing wait for weeks, the price of the cryptocurrency has finally started to rise. In what is expected to become a new big Bitcoin bull rally, the consequences of which are already impacting the BTC derivatives markets. Well, cryptocurrency futures are also entering an uptrend.

Bitcoin futures on the rise

Thus, as Bitcoin reaches its highest price in the last eleven months, the futures market reflects the optimism that is taking hold of the crypto market. According to a Skew graph that shows the relationship between puts (futures contracts for sale) and calls (futures contracts to buy) in the Bitcoin futures market, it can be seen how the purchase of calls is surpassing that of puts.

Bitcoin futures market on the rise. Source: Skew
Bitcoin futures market on the rise. Source: Skew

This would be a clear bullish signal, as it shows how futures market investors prefer derivatives that allow them to acquire Bitcoin at a certain price in the future, rather than sell it. Reflecting his confidence that the price of the cryptocurrency will far exceed the price set in the contract. Allowing them to buy cheap BTC and sell them expensive in the spot market.

These types of trends in the Bitcoin futures market usually end up having a major influence on the price of BTC. Well, the optimism shown by those who are in charge of carrying out operations with the cryptocurrency based on the price that it will reach in one, three or six months, is an indicator that the price of it can increase rapidly. What makes this our Today’s Data here at CryptoTrend.

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