Bitcoin Surges with Record $38.76B Open Interest as Institutional Demand Grows

• Interest in Bitcoin has surged among derivatives traders, with open interest in the cryptocurrency reaching a record $38.76 billion, according to Coinglass.
• This spike marks a 6.7% increase from a previous high in March, while Bitcoin spot ETFs have seen significant net inflows, the second highest for the year.
• The cumulative net inflow for Bitcoin spot ETFs has surpassed $15 billion, standing at $15.56 billion, as reported by Sosovalue.

As Bitcoin’s open interest hits an all-time high and institutional interest grows, market analysts predict potentially record-breaking price levels for the cryptocurrency.

Bitcoin Open Interest Hits New Record

Bitcoin open interest has reached a historic peak of $38.76 billion, representing a notable 6.7% increase from its previous all-time high in March. This surge underscores the heightened bullish sentiment among derivatives traders, according to data from Coinglass. Concurrently, Bitcoin spot ETFs have experienced their second-highest net inflows this year, signaling robust demand and investor confidence.

Institutional Investors Drive Demand for Bitcoin ETFs

Research from Sosovalue indicates that the cumulative net inflow in Bitcoin spot ETFs has now surpassed $15.56 billion. According to a note shared by Geoffrey Kendrick, an analyst at Standard Chartered, institutional investors are increasingly purchasing Bitcoin spot ETFs. This trend started gaining momentum in mid-May, coinciding with 13F filings that revealed broad and substantial holdings in BTC ETFs. For instance, Blackrock’s IBIT had 414 reported holders, including major banks, hedge funds, and state pension funds.

Strong Institutional Support Highlights Bitcoin’s Growth

Illustrating this institutional interest, medical technology firm Semler Scientific recently purchased $17 million worth of Bitcoin, with plans to invest an additional $150 million in the future. Analysts at Standard Chartered forecast that Bitcoin’s price could reach record highs if U.S. payroll data is favorable. They predict that Bitcoin may hit $80,000 by the month’s end, barring any unforeseen economic data releases.

Influence of Political Events on Bitcoin Prices

Standard Chartered analysts further anticipate that if Donald Trump wins the upcoming U.S. presidential election, Bitcoin’s price could see significant gains. They project the price could ascend to $100,000 as the election approaches and potentially exceed $150,000 by year-end if Trump secures a second term. Achieving this milestone would place Bitcoin among financial assets with a market capitalization exceeding $3 trillion, surpassing the current $2.8 trillion global market cap.

Conclusion

The recent surge in Bitcoin open interest and the substantial inflows into Bitcoin spot ETFs highlight a growing bullish sentiment and robust institutional interest. With favorable economic data and potential political developments on the horizon, the cryptocurrency market could be poised for unprecedented growth. Investors should closely monitor these factors as Bitcoin stands on the cusp of potentially historic price movements.