Bullish For Crypto: CME Bitcoin Futures Open Interest Growth On Pace To Rival BitMEX

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin is maturing as an asset. After years of hope from the crypto community, institutional investors are finally taking notice.

Adding credence to this growing trend, CME Bitcoin Futures’ open interest is “fast approaching” that of the long-time crypto industry leader, BitMEX.

Black Thursday Selloff Has Left BitMEX For Dead

At the start of 2020, Bitcoin and the rest of the cryptocurrency asset class went on massive rallies. The first-ever cryptocurrency exploded above $10,000 but was unable to hold the key level as support.

On the way down, the world caught wind of the unprecedented pandemic we were all about to face, and all financial markets collapsed under the pressure of widespread panic.

A liquidity crisis and mad dash to cash out any assets, crypto included, caused an event now referred to in hindsight as Black Thursday.

That fateful day was also a major disaster for the most dominant crypto trading platform, BitMEX.

The platform’s liquidation engine lost control as the selloff caused a cascade of stops being hit, triggering massive liquidations and crushing any traders on the platform.

The moment BitMEX was taken offline, Bitcoin price began to rebound and it has been on a steady uptrend ever since.

Open interest on BitMEX has plummeted since and has even reached historic lows following.

More evidence for the "institutionalization" of Bitcoin.

CME Bitcoin Futures Open interest is fast approaching BitMEX's XBTUSD – BitMEX is the long held market leader in retail Bitcoin futures trading.

CME Open interest up 310% in 2020 alone. pic.twitter.com/5ScIZBtNr4

— Charles Edwards (@caprioleio) June 9, 2020

Bitcoin CME Futures Open Interest Approaches BitMEX Levels, But What’s The Cause?

All the while the mass exodus from BitMEX is underway, Bitcoin CME Futures open interest has grown by over 300% in 2020 alone.

The number is “fast approaching” BitMEX’s XBTUSD contract open interest, according to data shared by well-known Bitcoin analyst, Charles Edwards.

Edwards is the author of many Bitcoin fundamental tools on TradingView, such as the Hash Ribbons, Production Cost Oscillator, Energy Value, and many more.

Although the data appears as if traders have left BitMEX for CME, this is an unlikely scenario. CME is an institutional platform that only traders with certain income levels and other met requirements can trade on.

BitMEX requires no KYC and lets anyone trade on the platform so long as they have a VPN. BitMEX settles its contracts in BTC, while CME settles in cash.

CME is where big intuitional traders play, BitMEX is for over-leveraged gamblers.

Instead, what we’re likely witnessing is Bitcoin maturing as an asset and a new uptrend beginning. The retail traders who were using BitMEX short-selling to build their BTC stacks have since begun moving their cryptocurrency off exchanges and into cold storage for the long haul.

At the same time, institutions are taking an interest, and few platforms cater to this type of trader, so CME is seeing a surge in growth as a result.

Other institution focused investment firms are eyeing Bitcoin in a big way. Grayscale Investments is said to be buying up 150% of newly mined Bitcoins on the regular.

With so much institutional interest and retail traders moving their funds off exchanges to hold for an uptrend, each day, more signs are pointing to the cryptocurrency’s next bull market beginning.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.