Bitcoin [BTC] futures volume and open interest on institutional platforms like CME and Bakkt are at All-Time Highs. The surge began around 27th July with the 11.08% break-out above $11,000.  

The monthly futures price in contango further confirms the bullish inclination of the large OI. Contango implies that the price of future month contracts is higher than the months before it. During extreme bullish sentiments, this premium rises to over $1000.

According to leading market analyst, the rise in OI on CME on the back of huge volume indicates institutional interest. Kyle Davies, the co-founder of Three Arrows Capital confirms that,

CME’s contract is 5 BTC notional and frequently large block trades account for a LOT of the volume. This is US institutional chads not retail.

Not only CME, another popular platform for institutional traders, Bakkt Bitcoin futures OI is also at an ATH.

What happened during the weekend seems like a temporary reaction to over-leverages longs on unregulated exchanges. This is a novel instance where the funding and basis on unregulated perpetual contracts seem to be lagging the growth in CME and Bakkt. Leading analytics firm, Skew finds that,

CME is now #3 in terms of largest open interest for #bitcoinfutures, only OKEx and BitMEX are ahead

During extreme euphoric conditions, the OI on BitMEX And Okex have been known to cross $1 billion. Currently, it is less than $700 million. The funding rate for altcoins on BitMEX is, nevertheless, on an over-drive. The funding rate and basis on Okex, however, is less than 1% (positive, nonetheless). Hence, the overall crypto market sentiments seem bullish.

Do you think the crypto market is read for another bull-run? Please share your views with us.