The price of Bitcoin surged past $18,000 once again, marking a sharp recovery from its earlier intraday drop to around $17,355. Behind the ongoing rally is a noticeable spike in the open interest of CME and other major futures exchanges.
The open interest of the CME Bitcoin futures market recently surged past $1 billion, coming after an increase in the number of billionaires and large financial institutions publicly supporting or investing in BTC.
The CME Bitcoin futures market primarily targets institutions and accredited investors in the U.S hence, the open interest surpassing $1 billion would likely indicate significant demand for BTC from institutional investors.
Bitcoin had a strong narrative to see a sharp pullback as there were large sell orders at $17,500 and high time frame charts, both weekly and monthly, hovered well above short-term moving averages. But BTC pushed past the $18,000 level and is repeatedly testing the $18,500 resistance area, supplemented with strong buy orders across major exchanges.
So far, more institutional and high-net-worth investors have started to consider Bitcoin as a recognized portfolio asset. The institutional craze around Bitcoin could have caused the market sentiment around BTC to amplify.
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