When the needle begins to move it may be to late for the huddled masses to benefit from reasonable Bitcoin price levels. Global banking institutions continue to push real capital into Bitcoin and the flagship futures contracts at the CME have made that clear.
CME launched its Bitcoin futures contracts in December 2017 and since then it has attracted a ton of institutional interest towards the Bitcoin derivatives market. Each CME contract consists of 5 BTC which is settled at the end of each month. The Bitcoin futures volume on CME is also a great indication of market sentiment as investors usually go short in a bear market and start hedging long in the bull market.
Despite the price tussle in the last month, institutional investors have started to go bullish on Bitcoin again, as evident from the increasing number of investors going long on CME’s Bitcoin Futures market. Several crypto analytical firms have recently revealed that the number of investors going long on Bitcoin has started to rise again, after falling to almost zero. Currently, the long-holdings on CME have just gone above 1,100.
No longer is Bitcoin viewed as just a cypherpunk movement via’ neckbeards’ and anarchists. Those days are long gone – and have been replaced by commitments from Fidelity, CME, Bakkt (of the Intercontinental Exchange family), Microsoft and other corporate behemoths. In other words, CME volumes are just starting to catch up to the underlying architecture and dialogue. Long term, it seems higher BTC prices are ahead.