The price of Bitcoin surged past $18,000 once again, marking a sharp recovery from its earlier intraday drop to around $17,355. Behind the ongoing rally is a noticeable spike in the open interest of CME and other major futures exchanges.
The 15-minute price chart of Bitcoin. Source: BTCUSD on TradingView.com
The open interest of the CME Bitcoin futures market surged past $1 billion on November 18. This comes after an increase in the number of billionaires and large financial institutions publicly supporting or investing in BTC.
— skew (@skewdotcom) November 18, 2020
The CME Bitcoin futures market primarily targets institutions and accredited investors in the U.S. Hence, the open interest surpassing $1 billion would likely indicate significant demand for BTC from institutional investors.
The term open interest refers to the total sum of all long and short contracts in the market. It is useful to gauge the