Open interest for Bitcoin Futures on major derivatives crypto exchange BitMEX reached an all-time-high (ATH) as it crossed the $1 billion milestone. The record high happened for the first time since the crypto market crashed back in March 2020.
Bitcoin Futures Open Interest on BitMEX at 4-Month High
According to data from crypto derivatives market data provider Skew, the open interest on Bitcoin Futures on BitMEX crossed the $1B landmark for the first time since Black Thursday. Across the market, total open interest is above $4B.
While BitMEX is no longer the number one crypto derivatives exchange, the platform still leads the way in terms of BTC futures open interests. Data showed that BitMEX was ahead of major exchanges like OKEx and Huobi. In terms of BTC futures’ daily aggregated volume, BitMEX was the fourth highest at $571 million on July 20.
Data from Coinalyze shows total BTC futures open interest on the rise, even setting a new ATH. The increase in open interest indicates that there is more capital flowing to Bitcoin futures.
Despite the growth in open interest, the trading volume appears to be lagging. The situation is also the same in the spot market as exchanges are even seeing increasing outflows.
As CryptoPotato reported in July, open interest on Binance futures saw a better performance in June compared to May, with a 180% surge.
Is BTC Primed for Another Rally?
The growth in BTC futures open interests comes on a day of positive price action for bitcoin, finally breaking its $200 range-bound band. Bitcoin’s current upward momentum comes amid significant gains for precious metals and the equities market spurred on by reports of imminent fiscal stimulus packages.
On July 21, 2020, the European Union (EU) leaders agreed on a new $2T spending plan, with $858B (€750 billion) for EU economies worst hit by the COVID-19 pandemic. Meanwhile, a budget of $1.3T was set aside for 2021 to 2027.
Apart from the EU, the US is also reportedly planning to roll out another coronavirus stimulus package. House Speaker Nancy Pelosi mentioned earlier in July that a new COVID-19 stimulus package could cost up to $1.3T.
These monetary and fiscal policies might help to push BTC even higher as investors seek haven assets as a hedge against monetary debasement. According to a tweet by Bitcoin enthusiast and permabull Max Keiser, gold topping $2,000 and silver reaching $100 will see BTC reach a new ATH at $25,000.