As the crypto market maintains its bullish strength, many key metrics of Bitcoin have been demonstrating strong and optimistic trends in recent weeks, which could impact prices positively, suggesting a promising outlook for BTC in the upcoming days.

A Strong Growth In Bitcoin Futures Premium

Bitcoinβ€˜s futures annualized premium, a crucial metric that often gives bullish signals, has witnessed significant growth in the past few weeks. Crypto enthusiast and analyst, James Van Straten, shared the positive development on the X (formerly Twitter) platform, capturing the crypto community’s attention.

It is worth noting that the increase in this crucial indicator comes in light of rising market trends, indicating a shift in sentiment and a rise in investors’ confidence in future price performance both in the short and long term. Also, a growing demand with traders expecting further increases is often indicated by this spike in the indicator.

According to the expert, in the past 1 month, the annualized premium for purchasing spot Bitcoin Exchange-Traded Funds (ETFs) and selling short Chicago Mercantile Exchange (CME) futures has nearly doubled in growth, rising from about 6% to 11%.

James Van Straten further claims that the increase is more than twice the current Federal Reserve (Fed) funds effective rate of 5%, in addition to the Fed cutting rates even more over the next 3 months. β€œI would assume the use of the β€œbasis trade” will only increase,” he added.

Bitcoin’s futures annualized premium has almost doubled in 1 month | Source: James Van Straten on X

The analyst also pointed out a rise in Bitcoin’s Futures’ Open Interest (OI) while expressing his confliction when it comes to whether the β€œbasis trade” is being used more or less.Β 

In the last 24 hours, Bitcoin’s futures open interest saw a sharp increase of 20,000 BTC. Van Straten noted that the growth marks the biggest spike in open interest since June of this year along with a surge in net non-commercial short positioning.

However, while Bitcoin spot ETFs inflows totaling $2.7 billion and the recent acquisition from Emory University in the United States supports a pick-up directional long bias by about $15 million, CME open interest has declined more than 6% since its all-time high in mid-October. In any case, Van Straten claims directional long positioning simply increases liquidity, if not now, it will be later.

BTC Poised To Retest Its All-Time High Shortly

Optimism is brewing in the market as Bitcoin continues to see promising upward movement as it approaches its all-time high price of $73,000 set in March. Given the strong investors’ sentiment toward the crypto asset, there is a possibility that BTC could hit this crucial level in a few days.

At the time of writing, Bitcoin was trading at $72,412 only inches away from its peak, indicating a nearly 2% surge in the past day. Several upcoming key events like the US Presidential election are believed to drive the price even higher, which could see BTC setting a new peak soon.

Bitcoin
BTC trading at $72,284 on the 1D chart | Source: BTCUSDT on Tradingview.com

Featured image from Unsplash, chart from Tradingview.com

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