In recent days, the Bitcoin (BTC) market has seen significant inflows through exchange-traded funds (ETFs) and recorded growing interest from large investors, especially against the backdrop of the upcoming US elections. A telling development has been a sharp increase in open interest (OI) on the Chicago Mercantile Exchange (CME), where bitcoin futures and options play a key role. Observers note that the large number of positions oriented towards the end of November suggests that major players are preparing for possible changes in market sentiment due to the election. Pelion Capital founder Tony Stewart and analyst under the pseudonym GravitySucks stated that the increase in activity on the CME can be associated with the use of a strategy of “base trading”, which in the current environment can yield more than 10% per annum. This approach attracts both institutional investors and hedge funds interested in relatively safe and profitable investments. Interestingly, however, there is no similar activity on the Deribit platform.
Another significant event was the surpassing of the 1 million BTC mark under management of U.S. spot ETFs, as reported by Vetle Lunde, chief researcher at K33 Research. The influx of capital indicates a significant demand for bitcoin among large funds, which also contributed to its dominance in the market. BTC remains the main focus of interest for financial institutions, unlike altcoins, which are more popular among retail investors.
Some analysts believe that the
bitcoin
market is probably already overheated, especially amid a rise in positions to buy options with expiry after the election. This may indicate that investors have high expectations for the price of BTC in the future. However, there is also a more cautious sentiment: not all participants believe that the current levels are justified, especially before such significant events as the US election.
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