Bitcoin Just Broke Its Year Long Slump!

TL;DR

• ‘Futures contracts’ are mainly bets on whether or not a inventory/asset (e.g. Bitcoin) goes to go up or down by a set date sooner or later.

• The extra bets, the upper the ‘open curiosity.’ The upper the open curiosity, usually the upper Bitcoin’s value climbs.

• Open curiosity in Bitcoin futures simply jumped from ~$8 to ~$10B – that is the very best it has been for the reason that bear market started in Might of final yr!

• Which suggests both new cash is flowing into the market, or present contributors are growing their investments.

• Whichever method you slice it: extra open curiosity = more cash flowing into Bitcoin. We like to see it!

Full Story

You understand how when the housing market is sizzling, there is a greater quantity of bids positioned on properties?

And when it is cooling off, the quantity of bids goes down?

(I.e. Extra bids = greater costs).

Within the futures market, this ‘bid quantity’ is known as ‘open curiosity.’

ICYMI yesterday: futures contracts are agreements from merchants to purchase or promote an asset (e.g. Bitcoin) at a set value on a selected date.

(They’re mainly bets on whether or not a inventory/asset goes to go up or down by a set date sooner or later).

In terms of Bitcoin, the quantity of ‘open curiosity’ is often mirrored in Bitcoin’s real-time value.

Or higher but:

If extra bets are made on the longer term BTC value, the present value goes up.
If much less bets are made on the longer term BTC value, the present value goes down.

Full disclosure: this is not an ideal description, and we’re skimming over most of the complexities right here – however the correlation exists!

Simply test this Bitcoin chart out: